Manila: The Philippines has hit record-high export revenues in 2023 at $104 billion (5,852 trillion pesos), a 4.8-per cent jump from $98.8 billion export revenues posted in 2022, according to official data.
The Department of Trade and Industry (DTI) said in a statement Monday that Philippine exports have gone past the $100-billion mark in 2023, an all-time high revenue for the country’s outbound trade.
The data is based on the balance of payments (BOP) unveiled Monday (April 1, 2024) by the Bangko Sentral ng Pilipinas (BSP), the central monetary authority.
Services
DTI Secretary Alfredo Pascual hailed the achievement as record-setting. The notable growth in exports was primarily driven by services, particularly in information technology and business process management (ITBPM) and tourism services.
Service exports surged by 17.4 percent in 2023, reaching $48.29 billion compared to $41.12 billion in 2022. AseanStats, a regional data site, states the Philippines recorded $79 billion in total experts of goods and services in 2022.
Outsourcing
The Information Technology and Business Process Association of the Philippines reported ITBPM revenues at $35.5 billion, while government data indicated that travel services amounted to $9.1 billion.
However, goods exports experienced a decline of 4.1 per cent in 2023, totaling $55.32 billion compared to $57.71 billion in 2022.
Electronics, the country’s top goods export, dropped by 3.4 per cent, amounting to $955 million less than the previous year.
Diversification
The DTI emphasised the importance of diversifying export portfolios and enhancing competitiveness in key sectors to address such declines.
Secretary Pascual underscored the significance of collaborative efforts between the government and the private sector in achieving global excellence and export growth, as outlined in the Philippine Export Development Plan (PEDP) 2023-2028.
Despite the positive momentum, export revenues fell short of the PEDP target of $126.8 billion for 2023 by $23.2 billion. The official acknowledged the challenges.
AseanStats showed neighbouring Malaysia (population: 32 million) and Vietnam (population: 99 million) exported more than thrice as much in value than the Philippines, though the Philippines had a much bigger number of inhabitants (population: 111 million) than either.
High power rates
Moreover, the Philippines had the highest amount of trade deficit ($66.17 billion) among Asean members, compared to a surplus of $58.76 billion for Malaysia and $12 billion for Vietnam.
“The path to global excellence and export growth requires shared ambition, where the government and the private sector must intensify and sustain collaborations. Our guideline is the Philippine Export Development Plan (PEDP) 2023-2028
The biggest constraint to Philippine manufacturing is the higher cost of electricity – about 30 per cent – compared to its neighbours.
“The Philippines aims to address constraints to production, diversify and improve access to markets, and develop a strong and innovative export ecosystem," Pascual said.
“We recognise the ongoing challenges in both the domestic and global trading environments and hope to address the binding constraints to Philippine export competitiveness as we continue to implement the PEDP for 2023 to 2028,” the DTI chief added.
“Each exporter counts, and with cooperation, we can open the door to a future in which Philippine exports have increased their mindshare in the global market, underpinned by global competitiveness and innovation,” Pascual said.
