Foreign Buyers Association of the Philippines (Fobap) sees garment industry revenues ending flat this year, amid a string of unfavorable economic conditions currently affecting overseas markets, including the United States.
Earlier the association had predicted a modest growth in 2024. president Fobap Robert Young said that projections have been changed as there are no fresh production orders being placed. He said the association sees an unstable business climate in the apparel and clothing export business in the next two to three quarters. Eventually, he warned the production orders will dwindle.
One reason for low orders was that the majority of foreign clients were retreating from the global supply chain and shifting to regional or local suppliers.
With developments such as Japan slipping into recession officially and Germany’s recent announcement of a looming recession, plus an unpredictable USA economy, the economic growth and rebound of Third World countries such as the Philippines will be affected in the near term. Aside from these three countries, Fobap also exports to the European Union (EU), Canada and several other countries in Southeast Asia.
The Philippines’ total external trade in goods amounted to $67.03 billion from January to November 2023, spelling an annual decline of 13.7 percent. In contrast, service exports revenues from January to September 2023 grew by 20.7 percent to reach $34.7 billion during the nine-month period.
