THE Department of Trade and Industry (DTI) has adjusted its medium-term export projections from the original build-up of US$130 billion target by 2022 set in the Philippine Export Development Plan 2018 to 2022 to $103.9 billion.
“Given that the Covid-19 disrupted several business models, it will be difficult to go achieve our pre-pandemic targets. Hence, we had to adjust our projections based also on the various inputs from industry stakeholders,” said DTI Secretary Ramon Lopez.
He shared that the travel goods, garments and wood-based industries were hit the most because of weak global demand and a decrease in production due to Covid-19 restrictions.
According to Lopez, “The new projection can also be viewed as a fighting target 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 set by the Development Budget Coordination Committee.”
He is also optimistic that new investments and build-up of export capacities will be realized due to the expected immediate passage of the Corporate Recovery and Tax Incentives for Enterprises Act and the extension of the Bayanihan 2 We Recover As One Act, which will impact the export recovery in the next few years.
According to the DTI forecasts, goods and services exports for 2020 will shrink by 14.7 percent to $80.5 billion. It will then grow by 12.4 percent to $90.5 billion in 2021 and by 14.8 percent to $103.9 billion in 2022. Lopez asked the DTI-Export Marketing Bureau to review the targets given the drastic change in the global business environment.
Electronic products consistently composed more than half of the Philippine exports. Their association, Semiconductor and Electronics Industries in the Philippines (Seipi), assumes a negative seven percent growth for 2020 and a seven percent growth by 2021. A majority of these electronics exports are semiconductors. (PR)