The government expects the Philippine economy to remain resilient amid an expected slowdown in the exports industry following the coronavirus disease (COVID-19) spread.
Trade and Industry Secretary Ramon Lopez said recent figures show while other countries have started to see a drop in growth, the Philippines and Vietnam have managed to post improvements.
Lopez said this is because unlike in other countries, the production and the exports in the Philippines are continuing which resulted in minimal growth.
However, he said if the COVID-19 outbreak extends for the entire year, it will cut the country’s economic growth by up to 1 percentage point this year, citing estimates by the National Economic and Development Authority.
“If globally there is a slowdown especially in China which is our number one trading partner… but here, I would say there will be a slowdown, hopefully it will still be positive growth,” he said.
In terms of exports, Lopez said he expects the growth to range between 1.5-2 percent. Philippine exports reached a record high USD70.3 billion in 2019.
Lopez also said while companies, especially those abroad, source their supply and parts from China particularly in Wubei and have difficulties in their production, manufacturers are now considering other courses to avoid overdependence on suppliers from China.
It is expected that some manufacturing supply chains may shift to other countries like the Philippines, he added.
“Countries are reconsidering the Philippines as a site, a new supplier and they have expressed interest to set up here,” he said.
