Posted on April 4, 2017
The Philippines’ 2016 growth target is between six and seven percent. However, this target may be harder to reach because of weak export performance. Household spending and private investment are projected to improve due to the governments promises to address issues like the infrastructure bottlenecks. However, the weak export demand for Philippine products can slow down the Philippines’ economic growth, affecting industries such as agriculture and outsourcing efforts.
Although the weak export demand was slightly saved by the business process outsourcing (BPO) industry, net external demand will still drag the GDP growth of the country.
The fall is caused by lesser outbound shipments of: articles of apparel; chemicals; clothing accessories; ignition wiring sets and other wiring sets used in vehicles, aircrafts, and ships; machinery and transport equipment; metal components; other mineral products; and woodcraft and furniture.
In July 2015, revenues from exports were $5.37 billion. However, in July 2016, revenues from exports were $4.67 billion. The revenues from exports fell 13 percent. Merchandise trade also fell 6.6 percent in July.
Since July 2015, the exports have been turning down due to decreasing demands from traditional markets like China, Hong Kong, Japan, and US.