The Philippine Exporters Confederation, Inc. (Philexport), the nation’s leading exporters’ organization, forecasts that export revenues for 2025 may reach only $110 billion, falling short of the government’s target of $113.42 billion set in the Philippine Development Plan.
Philexport President Sergio Ortiz-Luis Jr. highlighted several factors contributing to this anticipated underperformance during the organization’s general membership meeting in Manila. He cited a challenging local and global operating environment, including a lack of government support, as significant concerns.
Ortiz-Luis outlined key domestic and external risks that exporters may face this year:
- Environmental Factors: The Philippines is susceptible to weather disturbances and extreme natural disasters, which can disrupt production and supply chains.
- Global Economic Conditions: An acute and prolonged economic slowdown in major economies could reduce demand for Philippine exports.
- Geopolitical Tensions: Ongoing geopolitical conflicts and complex trade wars, particularly protectionist policies in the United States, pose additional challenges.
The United States, China, and the European Union are the primary markets for Philippine exports. Any economic or policy shifts in these regions can significantly impact the country’s export performance.
Despite these challenges, Ortiz-Luis acknowledged recent legislative measures that could benefit the export sector. He pointed to the passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, designed to provide tax relief and incentives to businesses, as a positive development. Additionally, the approval of a value-added tax refund for non-resident tourists is expected to boost opportunities for domestic manufacturers and service providers by making local goods more attractive to foreign visitors.
The export sector’s performance is crucial to the Philippine economy, contributing significantly to employment and gross domestic product. As such, stakeholders are closely monitoring these developments and advocating for policies that support the industry’s growth and resilience in the face of global uncertainties.
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