MANILA – Despite the coronavirus disease (Covid-19) global outbreak, Trade Secretary Ramon Lopez on Wednesday said the Philippines is still expected to maintain a positive export performance this year.
In a press briefing in Malacañang, Lopez said exports covering goods and services would likely grow by more or less 1 percent despite a slowdown brought about by the deadly disease.
“Magkakaroon ng slowdown pero hopefully positive pa rin ang growth (There will be a slowdown but hopefully growth will still be positive).
He explained that the country’s export performance might not grow as much as the expected 1.5 to 2 percent, but could maintain close to 1 percent growth rate.
“We’re just hoping na maliit pa lang yung tama (that the effect would be minimal),” he said.
He also pointed out that Hubei province, the epicenter of the outbreak, only accounts for 1 percent of the Philippines’ total trade with China.
Meanwhile, he expressed confidence that the Philippine economy remained resilient. Philippine exports reached record high USD70.3 billion in 2019, from USD69.3 billion in 2018, Lopez earlier said.
He said only the Philippines and Vietnam reported positive export performance among Southeast Asian countries.
“Yung iba nagde-decline na po pati sa kanilang mga outputs tsaka exports fortunately sa atin po malakas pa din (Output and exports of other countries are declining. Fortunately, ours’ still strong),” he said.
Citing the estimates of the National Economic and Development Authority (NEDA), Lopez said if the Covid-19 outbreak will extend for the entire year, it will cut gross domestic product (GDP) growth by up to 1 percentage point (ppt) this year.
Possible new supplier
Lopez said the Covid-19 epidemic prompted the manufacturers to rethink their overdependence on suppliers from China and explore other countries.
He said the shift in the manufacturing supply chains amid the outbreak could benefit the Philippines.
“Nagkakaroon sila ng reconsideration ng Pilipinas as a site na maging supplier din tayo at nagkakaroon ng interes na willing magbukas dito (Countries are reconsidering the Philippines as a new supplier and they have expressed interest to open here),” he said.
Experts have said the Covid-19 outbreak puts China’s role as the world’s leading manufacturer at risk.
"If they are really thinking of diversifying (their) resources nila, Philippines is next na tinitiginan. Maaring hindi tayo nasa top of mind nila pero definitely nandun na tayo sa mga susunod na nasa isip nila pagdating sa expansion (We might not on top of their minds but definitely we are next in line when it comes to expansion)," he said. (PNA)
