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The Department of Commerce and Industry (DTI) has adjusted its medium-term export projections from the original cumulative target of $ 130 billion for 2022 set in the Philippines Export Development Plan 2018 to 2022 to $ 103.9 billion. Dollars.
“Since Covid-19 disrupted several business models, it will be difficult to achieve our pre-pandemic goals. Therefore, we had to adjust our projections also based on the various input from industry stakeholders, ”said DTI Secretary Ramón López.
He shared that the travel goods, clothing and wood industries were hit the hardest due to weak global demand and a decline in production due to Covid-19 restrictions.
According to López, “the new projection can also be seen as a combat objective for the DTI, given the challenges of the pandemic and the emergence of new strains, and given that this is higher than the $ 86 billion established by the Committee on Coordination of the Development Budget. . “
He is also optimistic that new investment and export capacity building will be made due to the expected immediate passage of the Corporate Recovery and Business Tax Incentives Act and the extension of the Bayanihan 2 We Recover As One Act, which will affect the recovery. of exports in the coming years.
Forecast
According to DTI forecasts, exports of goods and services for 2020 will decline by 14.7 percent to $ 80.5 billion. It will then grow 12.4 percent to $ 90.5 billion in 2021 and 14.8 percent to $ 103.9 billion in 2022. López asked DTI’s Export Marketing Office to review the targets given the drastic change in the global business environment.
Electronic products consistently made up more than half of Philippine exports. His association, Semiconductor and Electronics Industries in the Philippines (Seipi), assumes negative growth of seven percent by 2020 and growth of seven percent by 2021. Most of these electronics exports are semiconductors. (PR)
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