Philippine’s Trade and Industry Secretary Ramon M. Lopez has remained confident the country’s goods and services exports growth target of nine percent this year can be achieved. It could in particular be boosted by the depreciation of the peso against the US dollar.
“We are still confident we can hit eight to nine percent [growth] because of the favorable foreign exchange rate, which helps in the volume,” Lopez has stated. He noted that exports of goods and services in the first six months this year improved by 4.1 percent, despite the higher base last year.
Initially, the government reported of a 10 percent growth in exports in 2017 but this was later corrected to 20 percent. In theory, a weak peso would boost the country’s exports, since it would mean cheaper goods and services, encouraging other countries to buy. However, importing from other countries with a weak currency would be more expensive.
Business.mb.com.ph reported how on Friday, the local currency closed at P54.21 against the US dollar.