|
Thursday, July 21, 2005
Economist to exporters: Try local market
An economist has advised Filipino exporters to turn their attention to the local market amid negative economic developments in the international arena.
According to Mike Moran, Standard Chartered Bank’s senior regional economist, the global market, including the United States, is slowing down.
“The Euro economy is weak already. The US economy is slow this year. It will weaken more by 2006,” he said.
Moran, however, recognized the positive developments in the economies of Japan and China.
His view was not shared by an official of a local industry group.
Michael Basubas, vice president of the Cebu Furniture Industries Foundation Inc., said exporters, like other entrepreneurs, have to face the challenges of the global economy.
“The international market is down. But the local market is even more down than the international market. It’s a domino effect. We (business) can’t do anything but fight.
And besides, that market is always a matter of product. If your product is selling, then you will sustain your business. If not, then (you will have to close),” he told Sun.Star Cebu.
Moran said the weakening of the US dollar would have benefited the Euro, as it is the natural alternative to the US dollar. However, the economy of the European Union (EU) is also heading downward with the “fading out of economic momentum and political fallout.”
With this situation, Moran said exporters would struggle to maintain the growth they had experienced last year.
According to the Department of Trade and Industry 7, Cebu exports grew six percent in the first quarter of this year to $998.98 million from the same period a year ago.
This is slower than the 21 percent growth in exports registered by Central Visayas for the whole of last year, when it made $4.15 billion from $3.43 billion in 2003. Cebu traditionally accounts for 99 percent of the exports of Central Visayas.
Cebu-GTH (Gifts, Toys and Houseware) Manufacturers and Exporters Association Inc. president Jenifer Cruz earlier said the sector might have to double its efforts this year to equal its performance of last year.
The industry managed only minimal growth last year, compared to the other year, due to stiff competition from its counterparts in Asia, particularly China. (JBN )
(July 21, 2005 issue)
Write letter to the editor.Click here.
Join the Sun.Star message board.Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
