THE Philippine economy will return to growth path this year due to the projected recovery of exports and the continued expansion of the business-process outsourcing (BPO) sector.
In a Laging Handa briefing on Monday, Trade Secretary Ramon M. Lopez said exports may post
7-percent growth this year while the BPO sector is looking at a growth of 5 percent.
Lopez said the recent growth of the country’s exports and BPO sector are not only due to base effects. He said recent policies on allowing 100-percent operation in these sectors also contributed to the growth.
“Kaya malaki ho ang potential na makabalik po tayo kaagad sa growth path itong taon na ‘to [This is why our potential is high in returning to growth path this year]. And we would say we would be comparable to other countries—even among the bigger economies,” Lopez said in a mix of Filipino and English.
“Ang mga growth po diyan if ever, bumabalik po sila ng mga 3-percent to 5-percent growth [The growth that could be registered if they return to growth is around 3 to 5 percent]. Tayo naman po ay hindi mahuhuli diyan [Our growth will not be far behind],” he added.
Philippine Statistics Authority (PSA) data showed exports grew 72.1 percent in April 2021 compared to the same period 2020.
The data showed total export earnings increased to $5.71 billion in April 2021 from $3.32 billion in April 2020. PSA data also showed that the April 2021 figure is slightly higher than the $5.65 billion posted in April 2019.
Lopez added that manufacturing output, measured by the Volume of Production Index (VoPI), posted growth of 162.1 percent in April.
In April 2020, based on PSA data, the VoPI contracted 64.8 percent while in April 2019, the index contracted 14 percent.
“We cannot say that the reason for the growth was because of the decline last year. Even if we compare it to the previous year of 2019, pre-pandemic, our export level today is higher. So it appears that we are really returning to our solid growth paths in terms of exports,” Lopez said, partly in Filipino.
Last week, the BusinessMirror reported that the global container crisis and the expected holiday spending in the country’s top markets have apparently prompted international buyers to front-load their purchases of locally made Christmas decors and electronics.
Some economists said, however, that the surge in the country’s trade performance in April was largely due to base effects given the contraction of local and international trade caused by the great lockdown.
An expert noted that buyers would usually have their Christmas orders shipped in the third quarter of the year.
However, a report from the Financial Times indicated that retailers in the United States, one of the Philippines’s major markets, are scrambling to build up their holiday inventory to avoid delays that may be caused by the container crisis. (BusinessMirror story here: https://businessmirror.com.ph/2021/06/10/phl-export-earnings-up-72-1-in-april-psa/)
Safety seal
Meanwhile, the Department of Trade and Industry (DTI) is urging establishments to secure a safety seal certification so they can expand their operating capacity.
Lopez said currently, gyms are required to have a safety seal to operate. This seal allows them to operate at 30 percent capacity.
However, Lopez said the DTI will be proposing to the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) that these enterprises be allowed to open even without a safety seal.
If these establishments do not yet have a safety seal, Lopez said they can only be allowed to operate at 20-percent capacity.
“It’s like, you may now open and get a safety seal even after opening, just so we avoid a situation where many enterprises make simultaneous requests to LGUs and they all cannot open yet until inspected. You know, we’re just trying to avoid the bureaucracy there,” Lopez explained.
The government considers gyms as essential, especially when it comes to the physical fitness and wellness programs of Filipinos, he added. The only reason for the stringent requirements being made on them is because of their indoor operations and the sharing of equipment in their facilities.
When these establishments open, Lopez said, apart from limited capacity, they will be required to observe the minimum public health protocols as well as improved ventilation.
“As to its essentiality, many, and I guess all, especially those who are really trying to get their exercise in gyms, will say that these are essential. [They are also] essential in the economy, although not as big as restaurants and other retail establishments. They still account for about 22,000 workers which was part of the consideration [for] why they were also opened and allowed in the decision last Thursday by the IATF,” Lopez said.
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