Exports making a firm recovery – DTI. Continuous increase in growth since 3 months. Boost due to cooperation with ASEAN and China.

Boost in exports.

PICS Courtesy: Freeimages.com

PICS Courtesy: Freeimages.com

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The Filipino economy has been able to withstand the test of time in spite of severe constraints. The Department of Trade and Industry (DTI) oversees various aspects of this vital portion of the economy.

According to the Director, Export Marketing Bureau of the Department of Trade and Industry (DTI), the exports are recovering. This recovery is quite firmly building up a strong recovery for the export sector.

This trend is not isolated; we see many other economies who have boosted their exports in the first quarter of 2017. This trend may lead to a strong upsurge during the year 2017.

Senen Perlada was quite optimistic that the year will see us finishing in a strong position. Healthy figures during the first two months indicate a robust charge by the economy which is steady and continuous.

Thus, exports from the Philippines increased by 11 percent increase in February to $4.782 billion. Therefore, the Philippine Statistics Authority reported that this was the third consecutive monthly increase that pointed to a consistent increase.

The DTI keeps a close watch on the movements in selected economies in the Asian region. In the overall analysis of these economies, the Philippines ranked 9th in February. This was a fall since the Philippines ranked 3rd in the previous month.

But, the figures for exports showed an encouraging upward swing with the Philippines emerging 3rd in the export sector.
This spurt and firmness stems from the strengthening of ties with ASEAN colleagues and China. Consequently, the DTI expects these trade alliances to continue providing impetus to exports on a sustained basis.

This strategy of exploiting vast consumer markets is likely tp provide good returns in the months to come, Perlada stated. Moreover, the ASEAN-led Regional Comprehensive Economic Partnership (RCEP) negotiations are nearing finalization.

Therefore, the Philippines will try to ensure framing of these negotiations before the upcoming ASEAN summit. The Philippines is the host for this year’s ASEAN summit.

RCEP, the 10 member states of the ASEAN are floating this free trade agreement for mutual regional benefit. In addition, the six dialogue partners will be involved.
They are:
• India,
• Japan,
• Australia,
• China,
• South Korea, and
• New Zealand.

Furthermore, the DTI stated that we will be able to pull down the trade deficit with the Chinese juggernaut. In fact, the strong performance of exports in January encouraged Perlada to study ways to sustain it.

He promised that the private sector and the government will aim at an enhanced target on a sustained basis.

Therefore, he stated that the Export Development Council which is public-private collaboration is likely to enhance the projected target for this year to 7 percent.

The original forecast for this year’s exports growth was between 3 to 5 percent. These forecasts pertain to service exports as well as merchandise exports.

The projected increase in the case of merchandise exports is likely to grow 3 percent in the current fiscal.

However, the projected increase in growth for the services is likely to be as high as 8 percent.

The Philippine Export Development Plan for 2017is the source of these figures.

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Umrao Singh
Written for: Lars-Magnus Carlsson.
Thursday, April 20, 2017