The Philippine government is likely to struggle to meet its 2023 export target of $126.8 billion. Sergio Ortiz-Luis Jr., president of the Philippine Exporters Federation (Philexport), estimated that the country’s export performance may fall well short of this target due to factors such as global economic headwinds and supply chain disruptions.
He cited the ongoing impact of the Russia-Ukraine conflict on global supply chains, causing delays and rising costs for exporters around the world. Asked whether the situation in Israel would pose similar problems, he said yes but noted that the impact of the conflict has not yet been fully felt. In addition, tensions between the Philippines and China due to territorial disputes in the South China Sea have also made some companies worry about escalation.
Although the government set a growth target in this year’s export development plan, preliminary data released by the Philippine Statistics Authority showed that export revenue fell 6.6% from January to August. Exports of electronics, one of the Philippines’ largest export categories, also declined. This trend has been attributed to the adverse impact of geopolitical and trade conflicts, particularly involving export destinations such as the United States and China, as well as difficulties posed by the conflict between Russia and Ukraine.
(Source: inquirer Image source: freepik)
