The Export Development Council is poised to cut growth expectations under the Philippine Export Development Plan (PEDP) amid unexpected developments on the global and local fronts.
Export Marketing Bureau (EMB) director Bianca Pearl Sykimte said the EDC recognizes the need to adjust its ambitious targets, which were drafted during the pandemic recovery period.
“Back then, the global economic trend was positive. However, the current situation necessitates a more cautious approach,” she said.
The 2024 export target under PEDP is $143.4 billion, higher than the Philippine Development Plan’s (PDP) goal of $107 billion.
The EDC, a public-private partnership created to guide the country’s export industry, is expected to announce the revised and more moderate targets in its next meeting in July 2024.
Despite the adjustment to the PEDP, Sykimte said the more conservative PDP targets remain achievable. The PDP has a more cautious growth projection compared to the PEDP and is currently on track, she said.
The EDC said it is focused on initiatives that simplify and expedite the process of exporting from the Philippines. These efforts aim to reduce administrative burdens and enhance the overall competitiveness of Philippine exports.
A key initiative is the upcoming launch of a free trade agreement (FTA) information portal later this year. The online platform will act as a one-stop shop for exporters, providing readily available information on all aspects of FTAs.
A game-changing feature will be the “rules of origin simulator”, a tool that assists businesses in determining if their products qualify for preferential tariffs under specific FTAs, reducing uncertainties and simplifying export procedures.
The Philippines continues to rely heavily on semiconductors, which make up roughly 40 percent of total exports. While an increase in semiconductor exports is anticipated for 2024, long-term stability remains uncertain, Sykimte said.
She said the EDC recognizes the need for greater diversification in the export sector to reduce reliance on volatile international commodity prices.
Sectors like agriculture and resource-based exports are particularly vulnerable to fluctuations in global markets such as copper and coconut exports.
