Trade Update: Smaller deficit in August

The Philippine trade deficit in August narrowed by 19.4% year-on-year to USD 3.54 billion on the back of a contraction in imports and modest growth in exports.

Key points

• The country’s total deficit narrowed by 5.7% year-to-date to USD 32.4 billion.
• Exports growth slowed to 4.6% year-on-year from 17.6% in the preceding month. Meanwhile, imports contracted by 4.9%, a reversal from 5.8% growth in July.
• Manufactured goods remained the top export commodity and logged a modest growth of 2.3%. Meanwhile, raw materials and intermediate goods, the country’s top import, contracted by 6.2%.

Metrobank’s take

• Tepid global demand will continue to be a hurdle for exports.
• Imports of capital goods are expected to pick up in the coming months.
• Rising import prices and weak global demand will likely continue to contribute to the trade deficit.

(Disclaimer: This is general investment information only and does not constitute an offer or guarantee, with all investment decisions made at your own risk. The bank takes no responsibility for any potential losses.)

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ECONOMIC UPDATES

Philippines Trade Update: Trade balance improves on decreased imports

Weak global demand will continue to be a hurdle

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