Group 5 - The Philippine Export Experience, Philippine Trade Performance, Direction of

Philippine Trade, Profile of Filipino Exporters, Getting Started with Exports

Question: How have recent trends in the Philippine economy, export experience and trade
performance improved influenced the country’s overall economic direction?

Recent trends have positively influenced the Philippines' overall economic direction,
supported by strong domestic consumption, infrastructure investments, and remittances from
overseas Filipino workers (OFWs). The government's focus on sustaining growth through
infrastructure programs and managing inflation to boost consumer confidence has been pivotal.
The country has also experienced steady export growth, particularly in electronics and
machinery. These improvements in trade performance have enhanced economic resilience,
sustainable development, and global competitiveness. A rise in exports brings in money, jobs,
and investments, all of which support economic expansion. Better trade performance also
makes the nation more competitive and solidifies its place in the international market, which
promotes long-term economic growth and prosperity.

The Philippines has achieved strong economic growth for three consecutive years. In
2023, the GDP grew by 5.6% exceeding pre-pandemic levels (Canto et al., 2024). Sectors like
services, transportation, and construction are showing strong recovery. The trade deficit has
narrowed, meaning there is a better improvement in trade balance. The Philippines still has a
long way to go in terms of trade balance because of the fact that The Philippines relies heavily
on exports rather than imports. The Philippines as well is expected to see significant economic
growth due to the rise in its merchandise exports. In particular, the semiconductor industry is
one of the main driving factors behind the expected economic growth. The rise in semiconductor
exports contributed to the 26.8% growth in electronic product exports, which in turn contributed
to the 12.3% rise in overall merchandise exports from the Philippines (DTI, 2024). Export
markets such as the United States, Hong Kong, South Korea, the Netherlands, and Taiwan all
experienced increased exports from the Philippines as a result of its growth. This points to some
recovery in the electronics industry and a slow return to pre-pandemic sales The growing
IT-BPO sector exports, and the continuously recovering tourism sector (Biswas, 2023). These
trends, along with strong recovery from the recent COVID-19 pandemic, also provides optimism
for the country’s economic growth for the years to come.

In March 2024, The Philippines experienced a decrease of 15.4 % of total external trade
Though we can see a Year-to-date total exports increased, while the highest on export sales are
the electronic products commodity group. Our manufactured items still make up the majority of
overall exports. . While the sales of the export side have a negative growth Overall Philippines
maintains a strong growth rate, managing inflation and strengthening its trade performance.
With this, it strengthens the Philippine peso and brings in foreign currency hence, boosting the
economy.
Sources:
Biswas, R. (2023, December). Philippines economy shows robust growth into the new year.

S&P Global.

https://www.spglobal.com/marketintelligence/en/mi/research-analysis/philippines-econo

my-shows-robust-growth-into-the-new-year.html

Canto, J., Renz, F., & Villanueva, V. (2024, March 7). The Philippines economy in 2024:

Stronger for longer? McKinsey & Company.

https://www.mckinsey.com/ph/our-insights/the-philippines-economy-in-2024-stronger-for-

longer

Human verification. (n.d.).

https://www.dof.gov.ph/philippine-business-forum-philippine-economic-outlook/#:~:text

=Today%2C%20we%20are%20the%20fastest,strength%20of%20the%20Philippine%20e

conomy.

DTI. (2024, February). Philippine semiconductors drive strong merchandise exports growth in

February 2024. GOVPH.

https://www.dti.gov.ph/archives/news-archives/philippine-semiconductors-drive-strong-m

erchandise-exports-growth-february-2024/#:~:text=The%20positive%20momentum%20c

ontinued%20into,3.4%20billion%20in%20February%202024.