Trade Secretary Pascual says exports breached $100b for first time in 2023
Trade and Industry Secretary Fred Pascual announced that for the first time, Philippine exports breached $100 billion in 2023.
Following the release of Bangko Sentral ng Pilipinas (BSP) data, Director Bianca Sykimte of the DTI- Export Marketing Bureau (EMB) shared that the full-year total exports of both goods and services reached $103.6 billion, marking a 4.8 percent increase from the previous year.
This growth has been driven by the strong performance of the information technology and business process management (IT-BPM) sectors and a turn-around in tourism revenues.
Pascual highlighted that the DTI has been working closely with the IT and Business Process Association of the Philippines (IBPAP) and its partner associations including the Animation Council of the Philippines (ACPI), the Game Developers Association of the Philippines (GDAP), and the Healthcare Information Management Association of the Philippines (HIMAP); to deliver interventions responsive to the needs of industry players.
In 2023, the Philippines participated in several European trade fairs, supported by the ARISE Plus Philippines Project, to enhance the global presence of the Philippine game development and animation sectors. The participating companies also benefited from tailored coaching initiatives from both local and international experts.
The Philippines strengthened its position in the global healthcare information management sector through sustained engagement in the Americas, including an outbound business matching mission and participation in the HIMSS Global Health Conference.
Pascual praised Tourism Secretary Christina Frasco for its dual success in developing travel connectivity to the Philippines’ gateways and in galvanizing local government units (LGUs) and stakeholders to enhance the appeal of local tourism destinations.
Consequently, for the first time in 15 years, the Philippines achieved a surplus in tourism revenues.
Pascual also recognized the significant efforts and leadership of the DOT in reviving the country’s tourism industry through the National Tourism Development Plan (NTDP) 2023 to 2028.
In line with the NTDP, the DOT launched an aggressive campaign to realize its vision of making the Philippines a tourism powerhouse in Asia.
Travel services more than doubled its level from last year, reaching $9.1 billion in 2023. The Philippines welcomed more than five million international visitors, 91.8 percent of whom were foreigners, while the rest were overseas-based Filipinos.
Goods exports faced challenges, with electronics exports declining by 3.4 percent or $955 million compared to 2022, according to BSP data.
This decline highlights the importance of diversifying export portfolios and enhancing competitiveness in key sectors.
Other factors contributing to the decline in merchandise exports were coconut products, other agro-based items, other mineral products, and petroleum products. Conversely, fruits and vegetables experienced an increase in demand.
In contrast, Philippine services exports emerged as a powerhouse, with the sector experiencing a significant expansion of 17.4 percent, driving much of the overall export growth.
Travel services contributed nearly 70 percent of the incremental services export receipts in 2023, followed by other business services. Growth was also driven by sectors including telecommunications, computer and information services, and transport services.
Services exports continue to be a significant contributor to economic growth, recording some of the strongest growth and increasing its share of gross domestic product (GDP) from 12 percent in 2022 to 13 percent in 2023.
However, the overall contribution of exports to economic growth was dampened by weak external demand in the goods sector. In 2023, total exports accounted for 27 percent of the country’s GDP.
The DTI has been actively pursuing initiatives to capitalize on the strength of the services sector and address challenges in merchandise exports. These efforts include expanding the services industry’s reach by entering new markets and strengthening existing ones, as outlined in the Philippine Export Development Plan (PEDP) 2023-2028.
Regrading export markets, based on the data of Philippine Statistics Authority (PSA), the United States of America (USA) remained the top destination for Philippine merchandise exports, accounting for $11.5 billion or 15.7 percent of the Philippines’ total merchandise exports.
Japan, China, Hong Kong, and Singapore followed as top export markets. Notably, exports to India increased by nearly 53 percent in 2023. Presidential Communications Office
