Exports of goods and services hit record in 2023 but fell short of the target set under the Philippine Export Development Plan (PEDP) 2023-2028.
The Department of Trade and Industry (DTI) in a statement cited Bangko Sentral ng Pilipinas BPM6 data which showed last year’s exports rose 4.8 percent to $103.6 billion in 2023 from $98.83 billion in 2022 but it is $23.2 billion lower than the PEDP target of $126.8 billion for the year.
Acknowledging the ongoing challenges in both the domestic and global trading environments, Secretary Alfredo Pascual of the Department of Trade and Industry (DTI) said the agency hopes to address the binding constraints to Philippine export competitiveness such as taxation and ease of doing business. The agency vowed to support exporters in diversifying their product portfolio and in expanding their markets.
Bianca Sykimte, director of the Export Marketing Bureau, said exports growth in 2023 was driven by the strong performance of the information technology and business process management sectors and a turnaround in tourism revenues.
These two sectors pushed service exports to $48.3 billion in 2023 from $41 billion in 2022, a 17.4 percent increase.
Travel services more than doubled to $9.1 billion in 2023 and contributed nearly 70 percent of the incremental services export receipts for the year, followed by other business services. Growth was also driven by sectors including telecommunications, computer and information services, and transport services.
Merchandise exports fell 7.5 percent to $73.5 billion with the country’s major export, electronics, declining by 3.4 percent or $955 million compared to 2022. Other factors contributing to the decline in merchandise exports were coconut products, other agro-based items, other mineral products, and petroleum products.
“Our guideline is the PEDP 2023-2028, which aims to address constraints to production, diversify and improve access to markets, and develop a strong and innovative export ecosystem,” Pascual said in a statement.
Pascual said DTI remains committed to addressing the concerns of exporters by developing tailored programs and services aimed at empowering businesses and enhancing their competitive edge.
Pascual said the decline in goods exports necessitates the need to diversify export portfolios and to enhance competitiveness in key sectors.
The DTI has been actively pursuing initiatives to capitalize on the strength of the services sector and address challenges in merchandise exports.
These efforts include expanding the services industry’s reach by entering new markets and strengthening existing ones.
The DTI has intensified efforts to address key issues affecting export competitiveness, including value-added tax-related concerns, and green laning of Philippine exports.
The agency has conducted numerous “Usapang Exports” or Export Talks sessions nationwide to inform businesses about market opportunities and regulatory updates.
The DTI is also leveraging technology and digital services to enhance export capabilities.
This includes the launch of a free e-curriculum for Philippine exporters and the implementation of the “Origin Management System for the Promotion of Free Trade Agreements in the Philippines” project.
Services exports continue to be a significant contributor to economic growth, recording some of the strongest growth and increasing its share of gross domestic product (GDP) from 12 percent in 2022 to 13 percent in 2023.
However, the overall contribution of exports to economic growth was dampened by weak external demand in the goods sector. In 2023, total exports accounted for 27 percent of the country’s GDP.
