The Philippine garment industry faces a challenging year ahead, with revenues expected to remain flat in 2024 as unfavorable economic conditions dampen demand in key export markets. The Foreign Buyers Association of the Philippines (FOBAP) has revised its earlier growth projection of 2 per cent down to 0 per cent due to concerns about slowing economies in the US, Japan, and Germany.

Citing a lack of new production orders, Robert Young, President, FOBAP, expressed concern over the ‘rather unstable business climate’ in the coming quarters. He explained that foreign buyers are increasingly turning to regional suppliers, further impacting Filipino exports. Coupled with potential recessions in major markets, this trend could lead to a decline in production orders for Philippine garment manufacturers, he warned

However, despite these challenges in the garment industry, Philippine service exports increased by saw a 20.7 per cent in the first nine months of 2023, reaching $34.7 billion. This growth could potentially offset some of the losses in the garment sector.

The news highlights the vulnerability of the Philippine economy to external factors, particularly the performance of major trading partners. The government may need to explore diversification strategies and focus on strengthening the service sector to mitigate the impact of global economic slowdowns.