In 2023, the Philippines experienced an impressive increase in export earnings, surpassing the significant $100-billion mark in the trade of goods and services.
According to preliminary data released by the Department of Trade and Industry (DTI), export receipts escalated to $103.6 billion in 2023, marking a 4.8 percent increase from the previous year's $98.83 billion. This upward trajectory in export earnings has been consistent over the past three years.
Despite this noteworthy accomplishment, the numbers didn't meet the expectations set by both the government and industry, prompting a need for reflection on forthcoming strategies and obstacles.
Driving Forces: IT-BPM and Tourism
The driving forces behind this growth were primarily the Information Technology and Business Process Management (IT-BPM) sector and tourism. These sectors played a pivotal role in bolstering export figures despite challenges faced by merchandise goods, notably the contraction of electronics by 3.4 percent, equivalent to $955 million.
Mixed Fortunes for Merchandise Exports
While some segments experienced setbacks, such as coconut products, agro-based items, mineral products, and petroleum, others like fruits and vegetables witnessed an increase in demand, showcasing a mixed bag of fortunes within the merchandise export.
Robust Performance in Services
In contrast, services exports emerged as a powerhouse, showcasing a remarkable 17.4 percent growth. Travel services, in particular, contributed significantly, accounting for nearly 70 percent of the incremental service export receipts. Other sectors such as telecommunications, computer and information services, and transport services also contributed to this robust performance.
Falling Short of Targets
Despite the record highs reached in 2023, export revenues fell short of the ambitious targets set under the Philippine Export Development Plan (PEDP). With a target of $126.8 billion, the actual performance fell approximately $23 billion short of the mark, signaling the need for recalibration and strategic realignment.
Future Strategies and Collaborations
Looking ahead, the DTI emphasizes leveraging technology and digital services to enhance export capabilities. Initiatives such as the launch of a free e-curriculum for local exporters and the implementation of an origin management system aim to promote utilization of free trade agreements and bolster competitiveness on the global stage.
Meanwhile, Trade Secretary Alfredo Pascual stressed the importance of collaborative efforts between the government and the private sector to address ongoing challenges and sustain export growth. The commitment to implementing the PEDP for 2023 to 2028 underscores the shared ambition to propel Philippine exports to greater heights amidst evolving domestic and global trading environments.
