Agro exports competitive: NEDA

The Philippines can be “competitive” in exporting agro-based products as its exports base continues to diversify, the National Economic and Development Authority said.

NEDA Director General Arsenio Balisacan said that the composition and destination of Philippine exports have been changing.

“We find that our exports are increasingly diversifying,” Balisacan said at the Philippine Economic Briefing yesterday.

“In terms of destination, we’re seeing an increase in the intra-ASEAN or intra-Asian trade relationship. In terms of commodities, our export base has become more diversified, we are seeing more of agro-based exports,” Balisacan said.

The NEDA chief said that the exports diversification that is taking place lessens the vulnerability to a particular product or specific export destinations.

Exports of electronic products have been declining with the demand affected by the global crisis. Diversification of exports reduces the impact of similar shocks.

According to the National Statistics Office, outward shipments of electronic products dropped 7.19 percent in January to July from the same period last year.

“Seven or so years ago, the electronics sector accounted for about 70 percent (of total exports). Now it’s down to 50 percent,” Balisacan said.

The NEDA chief said that exports of agro-based commodities are also doing well, especially within the Asian region.

“What’s important to emphasize here is that the continued growth of our neighbors in Asia means that we have a big opportunity for agro-process commodities which are very much high in demand, and I think that we can be competitive in that area,” Balisacan said.

Meanwhile, the NEDA chief reiterated that there is a need to revive the manufacturing sector which, he said, has been stagnant for around three decades.

“The essence of inclusive growth is creating jobs especially in the manufacturing sector, and also jobs for the unskilled workers particularly in the agriculture sector,” Balisacan said.

Balisacan remains optimistic that the 5 to 6 percent growth target for the full year will be met, after the 6.1 percent expansion recorded in the first half of the year.

“It will most likely hit the upper range of the target,” Balisacan said. –Malaya