Despite the continuous slide in Philippine export earnings, economists remain sanguine there’s room for improvement. On Friday the Philippine Statistics Authority (PSA) said export earnings posted a contraction of 4.1 percent in April this year to $4.254 billion, from $4.434-billion recorded value in April 2015.
Export receipts growth between January and April 2016 posted a 7.3-percent decrease from $18.738 billion in 2015 to $17.363 billion in the same period of 2016.
“I expect exports to do better in the third and fourth quarters. There must be clear indications of economic strength in our major export markets [for this to happen],” University of Asia and the Pacific (UA&P) School of Economics Dean Cid L. Terosa told the BusinessMirror. “Exporters [for their part] need to scale up, create markets, integrate and innovate,” he added.
First Metro Investment Corp.-UA&P Capital Markets Research’s Victor A. Abola said major markets, such as the United States, are expected to post better growth in the second half of 2016. Abola said the growth of the US economy will be the major determinant of export growth since a growth in their economy will be an indicator of global demand.
He said the country can see improvement in export earnings around July this year, but positive growth numbers would start in September.
“We’ll see better performance in the second half, particularly in the last four months,” Abola said.
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