Through Jenina P. IbaÃ±ez, Senior reporter
EXPORTERS expect China’s agricultural orders to slow as the the country’s economic rebound fades, the top of an industrial groupFisaid cial.
“We expect that there may be effect especially on agricultural products, âsaid by telephone the president of the Philippine Exporters Confederation, Inc. (Philexport), Sergio R. Ortiz-Luis, Jr .. Mining exports will not be a problem.ffected, he added.
There was no signiFiUnable to cancel orders despite the expected slowdown, he said.
China’s economy grew 4.9% in the third quarter, slower than expected and below 7.9% growth in the second quarter after power shortages and supply chain constraints dampened recovery.
This poses risks for the global recovery fueled by China’s commodity orders after the country quickly reopened during the early stages of the pandemic, according to Bloomberg News.
China was the Philippines’ second largest export destination after the United States in the nine months leading up to September, according to government data.
Exports to China worth $ 8.72 billion accounted for 15.7% of Philippine exports during the period, up 23% from the previous year.
In September alone, Philippine exports to China fell 14.7% year-on-year to $ 1.05 billion.
Despite the slowing recovery in China, Ortiz-Luis said sea containers that transport goods to China are available amid a global container shortage.
The global shipping industry has faced a shortage of space for ships after demand rebounded in some countries, pushing freight rates up and causing delays in cargo shipments.
“There are boats going to China even though there is a shortage,” Ortiz-Luis said in Filipino.
The economic slowdown in China is a major challenge for global recovery, said National Economic and Development Authority (NEDA) Undersecretary Rosemarie G. Edillon.
âFrom a global supply perspective, China’s economic slowdown could increase the cost of doing business due to supply chain shortcomings,â she said in a Viber message.
Emerging markets and exporters could experience a slowdown in Chinese demand, she added. “For the Philippines, our strong macroeconomic fundamentals should provide resilience against external shocks, including a slowdown from China.”
China’s trade and investment opportunities remain despite its slower economic growth, Commerce Secretary Ramon M. Lopez said.
âThere is still optimism but this can be viewed with caution given their slowdown, so we need to watch this development closely,â he said in a Viber post.
Mr Lopez said the country should continue to develop its capabilities to manufacture higher value-added products, diversify goods and services and expand market destinations.
The government should continue to pursue economic reforms such as opening the country to more foreign investment, relying on the infrastructure program and strengthening the country’s foreign trade agreements, he added.