MANILA – A weaker Philippine peso is delivering a double-edged impact on the economy: higher earnings for exporters but increased costs for import-dependent manufacturers, prompting calls for programs that boost productivity and competitiveness, according to a manufacturing sector executive.
Elizabeth Lee, chairperson of the Federation of Philippine Industries (FPI), said the peso’s decline to around 60 against the US dollar this week amplifies export revenue. “However, rising import costs could squeeze manufacturers’ margins and eventually affect consumer prices,” she added.
Lee emphasized that small and medium-sized businesses are most at risk from currency volatility. “While exporters gain from a depreciated peso, the reliance on imported inputs limits the overall benefit,” she noted.
To mitigate these pressures, authorities are implementing strategies including calibrated monetary policies, energy supply diversification, and efforts to strengthen industrial capacity. Lee stressed that enhancing supply chain resilience and monitoring foreign exchange trends are crucial to sustaining economic stability and supporting domestic demand amid global uncertainty.
elamigo/xf
