Slow exports will not dampen economy

The National Economic and Development Authority (NEDA) is optimistic that the negative growth of the Philippine merchandise exports will not dampen the country’s economy.

“The recent exports data, it would not affect the growth. Because the one that gets into your GDP [gross domestic product] is exports minus imports,” NEDA Director General Arsenio Balisacan said on Tuesday at the sidelines of the Financing Infrastructure Development seminar in Makati City.

He added that the government is still hopeful that the economy, as measured by GDP, is within the 6-percent to 7-percent target for the first quarter and the rest of the year.

Latest data from the National Statistics Office (NSO) showed that January exports dipped by 2.7 percent, while February data recorded a double-digit negative growth of 15.6 percent. The NSO attributed the slow exports performance to the declining receipts on electronic products.

The NEDA chief also said that the government is developing its major commodity programs and commodity roadmaps.

He noted that those programs will allow the government to expand exports for other commodities and not just electronics, but also in agro-processing.

Balisacan mentioned that there is so much potential for agro-process exports, and that will allow the government to get more aggressive in the exports side.

“If one side is not doing well, you have to look at some other things. I think that the decline in exports is just temporary,” he added.

The NEDA chief also asserted that exports should be diversified to avoid vulnerability, and it should not focus to a certain group of commodities, but on other products also.

He explained that there has been a lot of diversification, adding that in the past few years, electronics comprise about 70 percent of exports, but now it is less than 50 percent.

“And it will continue to decrease as other sources of exports will grow faster,” Balisacan added. –MAYVELIN U. CARABALLO REPORTER, Manila Times