Central Visayas exports plunge 26% amid global crisis: Neda 7

THE export industry of Central Visayas took a huge blow last year, as the global economic crisis hit Philippine shores.

This was revealed by the National Economic and Development Authority (Neda) during the Philippine Economic Briefing held yesterday at Cebu City Marriott Hotel.

Exports during the first three quarters of 2009 dropped 26 percent from a year ago. Luckily in the fourth quarter of last year, the export business slowly picked up.

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The tourism sector in the region also grew at a slower rate but is expected to achieve positive growth as global tourism starts to recover.

The retail trade industry also grew in the first quarter of this year because of the increase in spending on election campaign-related activities.

The business process outsourcing (BPO) industry saw steady growth in 2009.

Neda Regional Director Marlene Rodriguez said, “With the revenue of the BPO industry in the country hitting $7.22 billion in 2009, we estimate Cebu’s contribution to this to be around $650 million.”

Challenges

Risks and challenges still lurk ahead for the Philippines, though.

World economic conditions would affect the country’s economy. The challenges include increasing crude oil prices, consumer prices, exchange rate fluctuations and narrowing sources of investment.

Natural calamities like typhoons Ondoy and Pepeng that affected the country last year and the El Niño dry spell this year could cause bumps in the economy’s recovery.

But Neda remained positive that the Philippines would sustain its economic gains. The growth drivers that are expected to expand and support the economy this year include outsourcing, finance, mining and quarrying, construction, government services and tourism.

Growth in the country’s industry sectors has been positive, starting in the last quarter of 2009, as the global economy started to recover.

Neda Acting Director General Augusto B. Santos said despite the global economic crisis, the Philippines has a stable macroeconomic environment. This is due to the implementation of critical economic reforms since 2001.

Reforms

Reforms such as focusing on price stability, strengthening the banking system, enhancing competitiveness in different sectors, upgrading the country’s connectivity through infrastructure and providing the platform for macro stability helped the country sustain a positive level of growth.

“Growth was relatively weak in the first three quarters last year, but in the fourth quarter, the Philippines was only one of four countries, including China, Vietnam and Singapore, that recorded positive levels of growth while other Asian economies experienced a contraction or were still in recession,” Santos said. (RBF)