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Various Philippine export sectors,
including those offering goods and services with also strong domestic
demand, would have higher chances of success in foreign markets once
the global economy recovers from the financial crisis by the end of
2009.
The post-recovery assessment was given by Department of Trade and
Industry Undersecretary Thomas G. Aquino during the recent PHILEXPORT
general membership meeting. He projected the road to recovery will be
seen towards year-end. “A recovery always
follows a recession,” he said. “The world will be as dynamic, if not
more than it was before the crisis. However, global economy will be
dispersed among more countries.”
Aquino pointed out that while most Philippine businesses are
undergoing stress tests as a result of the crisis, some of these would
likely recover. He said export sectors to emerge include those
selling basic consumer products which are also hits in the local market
and those offering services for overseas Filipinos.
Brighter Future
Citing projection made by the Goldman Sachs Global Economics Group,
the trade official said the Philippines is going to be the 17th biggest market in the world by 2050, indicating enormous opportunities available for businesses.
The country has also been included in the Next 11 countries, along
with Brazil, Russia, India, China and ASEAN nations (BRICA), which are
seen to pick up, outpacing G-7 countries, he added.
Aquino said Filipinos overseas, on the other hand, could serve as “ready buyers” for the Philippine products. Likewise, Aquino said goods and services like organic and natural
products that are able to keep in step with increasing product
standards in markets abroad, could also ride out a crisis.
Other
sectors that have recovery potentials include providers of services
based on relatively lower-cost business models like information
technology (IT) technical support and healthcare; and goods and
services based on unique, natural selling propositions of the country
like specialized tourist facilities and events creation.
Getting Ready
To prepare for the rebound, Aquino advised exporters to deepen
their expertise in doing business in specific foreign markets as a way
of internationalizing their core operations.
The government,
for its part, shall raise the status of institutions, build capacity
and increase size of resources set for export trade financing,
including proper appreciation of opportunities and risks in
reconfigured foreign markets, he said.
Aquino said government trade staff will also undergo training to
intensify familiarity with changing realities of competition and entry
into foreign markets.
“The
world returns to dynamic growth but there is going to be a
reconfiguration among players,” Aquino said. “First, the US and Europe
struggle to recover conditioned by structural differences. Second,
challenge to China in wielding/asserting global influence as a huge
country-market.”
Aquino said there are already encouraging early signs of recovery
in the market, citing the lower Philippine exports year-on-year
declines in March and April this year compared to three months-ago
figures.
His view was validated by PHILEXPORT President Sergio
Ortiz-Luis Jr. who bared that some major exports particularly
electronics and semiconductor are already beginning to recover lost
grounds, with new orders trickling back.
“This, coupled with the perking up of consumer spending in the United States, could mean that the worst is over,” he noted.
The
Export Development Council has revised its projection for this year to
a minus eight percent in total exports, with merchandise exports
projected to reach negative 16 percent. -- Danielle Venz, PHILEXPORT News and Features
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