‘Government doing its best to hit growth goal’

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MANILA, Philippines — The Marcos administration will make every effort to achieve this year’s economic growth target of 5.5 to 6.5 percent, Malacañang said yesterday.

As it pushes toward that goal, the government is also set to release on Dec. 4 the downgraded export targets for 2025 to 2028 as part of the midterm update on the Philippine Export Development Plan (PEDP).

“Muli, sinisikap ng Palasyo, sinisikap ng Pangulo na maabot natin kung ano iyong target po natin (Again, the Palace is making efforts to ensure that we reach our target),” Presidential Communications Undersecretary Claire Castro said at a press briefing.

“So, pagtutulung-tulungan po ng economic team ng Pangulo at also with the help of the people na sana maabot natin ang target (So, the President’s economic team will work together, and also with the help of the people, hopefully we will reach our target),” she added.

Castro cited the ongoing “political noise” as among the factors that affect economic growth.

“Pagsisikapan pa rin po, especially with these kinds of rallies na nangyari po, medyo maingay po, talaga pong nakakaapekto ito sa ekonomiya (We will continue to strive, especially with these kinds of rallies that happened, the political noise, it somewhat affects the economy),” she said.

In a press conference on Monday, Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan said achieving the government’s 5.5 to 6.5 percent growth goal for the year is “very unlikely.”

“We need to grow roughly seven percent in the fourth quarter to achieve a 5.5-percent growth for the year. Given the situations and the data that are coming out, that’s quite unlikely,” Balisacan said.

Against this backdrop, the government is set to release revised export targets for the years 2025 to 2028 later this week, according to the Department of Trade and Industry (DTI).

Bianca Sykimte, director of the DTI – Export Marketing Bureau told reporters during the opening of the National Exporters’ Week yesterday, that the targets are being revised as these were crafted when the country was seeing recovery in the sector following the COVID pandemic.

“The projections were quite high. So basically, the upward momentum was not sustained,” she said.

She said the country’s total exports are expected to reach around $110 billion this year.

Under the PEDP, the goal is for the country’s exports to reach $163.6 billion this year, $186.7 billion in 2026, $212.1 billion in 2027 and $240.5 billion in 2028.

Meanwhile, the 2025 export target under the updated Philippine Development Plan is at $115.49 billion, up from the initial goal of $113.42 billion.

The export targets are being revised even as Philippine merchandise exports have grown for 10 consecutive months, reflecting the sector’s recovery from a slowdown in the past two years.

From January to October, the country’s merchandise exports reached $70.43 billion, up by 13.8 percent from $61.90 billion in the same period last year.

Merchandise exports grew even as the US started imposing a 19-percent tariff on Philippine goods.

Sykimte attributed this to the front-loading of exports or early shipments to avoid the tariffs.

Trade Secretary Cristina Roque said the recent executive order issued by the US exempting agricultural goods from the tariffs is expected to provide a boost to the country’s exports.

“This is a win for the agriculture industry and for our farmers in the Philippines,” she said noting the country’s key exports including coconut products and pineapples are expected to benefit from this development.

While merchandise exports grew, services exports declined slightly to $24.43 billion in the first semester from $24.65 billion recorded in the same period last year.

Despite the dip, the DTI said major service industries such as the information technology - business process management, travel and transport continued to perform near previous year’s levels.

Sykimte said the government is launching various initiatives to support exports growth in the coming years.

Among these initiatives is the Free Trade Agreement (FTA) Origin Management System, which will make it easier for exporters to utilize trade preferences.

The system, which was developed through a partnership between the Philippines and South Korea, is designed to reduce processing time and help micro, small and medium enterprises navigate FTA requirements.

In particular, it automates and modernizes origin determination, certification and document management.

The DTI is also set to launch PHX Source, an online export directory that will connect exporters with international buyers

Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis Jr. said both are expected to support the exports sector.

“These tools are concrete steps toward trade facilitation, digital transformation and strengthening the capacity of our exporters to compete, connect and collaborate across borders,” he said.

Roque said the government aims to build a resilient, innovative and more diversified export sector.