Éxports projected to grow 15% this year

Businessmen are targeting a 15-percent growth in exports this year despite a slowdown in demand from the US which accounts for 60 percent of global demand.

Philexport President Sergio Ortiz Luis Jr. said the continued appreciation of the peso against the greenback will have little effect on the total exports because businessmen have devised ways to lessen transaction cost to make up for the stronger local currency. "Exporters have to adjust," Ortiz Luis said

The businessman said exporters will shift their focus from European and American markets to Asian countries like Japan and China. "The problem market is US and Europe. China will now be our main market," he said.

Although recent National Statistics Office (NSO) data show that majority of Philippine exports are sold in the United States, Ortiz Luis said China’s demand has increased significantly. "The losses from the US and Europe will be ably compensated by China and Japan."

Last year, exports exceeded the expected 10 percent growth. Ortiz Luis said goods sold overseas broke the $50 billion mark — $47.3 billion for manufactured and $3.7 billion for services.

Ortiz-Luis admitted that the 15-percent growth may be an optimistic target but a 10 percent to 12-percent growth will be reasonable. The Department of Trade and Industry is hoping for exports to grow by 11 percent, he said.

To further help exporters, the government and a group of exporters has put up P280 million to bankroll the creation of the Export Promotion Fund (EPF) tasked to supplement the financing for the promotion and development of local exports.

Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said the EPF will provide supplemental financing to projects that are expected to promote growth of the export sector and provide opportunities for job creation. The projects to be funded must be sustainable and will focus on capacity building, product design and market research.

Seed contributions were from the Department of Budget and Management (DBM) which gave P100 million; the Department of Trade and Industry (DTI), P100 million; BSP, P50 million; NEDA representing the National Government as the owner of the Industrial Guarantee and Loan Fund, P20 million; and the Philippine Exporters Confederation, Inc., P10 million.

A memorandum of agreement was signed last month by the five contributors providing for the terms and mechanics for disbursement, utilization and management of the fund. The contributors likewise agreed to the formation of a committee to review and act on proposals for funding assistance of export promotion activities.