Connect with us

Hi, what are you looking for?


PHL trade slump bottoms out, but weak growth expected to continue

THE PHILIPPINES is past the worst point of its trade slump, though growth may remain weak going forward, Pantheon Macroeconomics said.

“A sustained acceleration in year-over-year trade growth is unlikely in the current climate, but we’re confident that the worst is over,” it said in latest Emerging Asia Economic Monitor report.

The report, written by Chief Emerging Asia Economist Miguel Chanco and Senior Asia Economist Moorthy Krshnan, said that while the Philippines’ trade performance is beating expectations, a “big surge” in growth is not expected.

“Two-way trade growth in the Philippines looks to have turned a real corner in the second quarter… trends at the margin have been on the mend for months, and this continued in May,” it added.

The Philippine Statistics Authority reported that the trade deficit narrowed to a three-month low of $4.4 billion in May.

In the first five months, the trade deficit was $23.99 billion, little changed from the $23.96-billion deficit posted a year earlier.

The Philippines is a net importer, incurring a trade deficit for the last eight years since the last surplus of $64.95 million in May 2015.

“The year-over-year improvement should hold, as short-term trends have been recovering for months,” it added.

Meanwhile, Pantheon Macroeconomics also noted that export growth may moderate.

“One reason why stability, rather than a surge, in export growth looks more likely, for now, is that we’ve yet to see a U-turn in year-over-year export growth in Korea, a much larger player in global semiconductors,” it said.

“Semiconductors effectively have been driving the rise in total Philippine exports single-handedly from the latter’s nadir in February. And the bad news is that their upswing since March probably is unsustainable, as the sector appears now to be in a glut of supply globally,” it added.

During the five-month period, exports declined 11.5% to $28.21 billion, missing the government’s 1% growth target this year.

More than half (54%) of total exports were electronic products. Electronics exports fell 12.8% to $15.37 billion, of which semiconductor exports declined 9.7% to $12.07 billion.

“In terms of import growth, the outperformance in consumer goods is fragile, owing to the structural headwinds facing households. Meanwhile, capital goods imports likely will remain under pressure from high interest rates and subdued capex plans,” Pantheon Macroeconomics added.

In the first five months, imports fell 6.6% to $52.2 billion. The government had set a growth target of 2% for the year.

Imports of capital goods fell 5.8% to $15.05 billion, while imports of consumer goods rose 15.6% to $9.59 billion. — Luisa Maria Jacinta C. Jocson

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



In a surprising turn of events, Dame Sharon White, the CEO of John Lewis, has announced her resignation from the company. After just three...


By Luisa Maria Jacinta C. Jocson, Reporter MANUFACTURING ACTIVITY in the Philippines expanded in September, driven by resilient domestic demand and growth in new...


THE NATIONAL GOVERNMENT’S (NG) outstanding debt reached a record P14.35 trillion as of end-August, mainly due to the peso depreciation against the US dollar,...


THE WORLD BANK expects the Philippines to be the fastest-growing economy in Southeast Asia this year, despite trimming its gross domestic product (GDP) growth...


FINANCIAL INTEGRATION in the Association of Southeast Asian Nations (ASEAN) region could boost economic growth in the Philippines by about 3.5 percentage points (ppts),...


THE Philippine Stock Exchange, Inc. (PSE) said the guidelines on short-selling transactions are to take effect immediately after securing approval from government regulators. In...

You May Also Like

Top News

As the world seeks sustainable and energy-efficient solutions for heating and cooling, the heat pump market is experiencing a significant surge. According to the...


The Toto site’s user-friendly interface makes it easy for both beginners and experienced gamblers to navigate through the various features. “¸ÔÆ¢Æú¸®½º site is a...


Almost 100 jobs are thought to be under threat at smart home energy technology manufacturer myenergi. The Grimsby firm, named one of the UK’s...


JUNIOR FERREIRA-UNSPLASH The Philippines is a very small power market by ASEAN standards, with market demand peaking at 15 gigawatts (GW) compared to Thailand’s...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.