Philippine trade deficit narrows in November
MANILA, Philippines — The Philippines posted a narrower trade deficit in November last year after both exports and imports pulled back, the country’s statistics agency reported Friday.
Trade gap last November stood at $3.34 billion, 18% smaller than $4.07 deficit recorded a year ago but larger than $3.24 billion gap in October.
Exports contracted 0.7% to $5.60 billion in November. Meanwhile, imports sagged 8% to $8.94 billion, with purchases of capital goods and raw materials down month-on-month.
“Impulse from fiscal spending to capital goods imports remains limited,” J.P. Morgan said.
“The November trade data implies that this trend continues, and we maintain our call that the scope for further pickup in capex remains limited, and the current account deficit likely will narrow,” it added.
In a statement, the National Economic and Development Authority said diversifying and managing the use of energy sources in the Philippines should be further strengthened to avoid potential supply shocks amid a slow recovery of global trade.
“Global trade growth is poised to a slow recovery despite the easing of trade tensions between China and the US. The heightened conflict between the US and Iran and its impact on oil prices could result in increased cost of production for domestic-oriented as well as export-oriented firms,” Socioeconomic Planning Secretary Ernesto Pernia said.
“In the long term, strengthening the capability of the country to provide alternative fuels and tapping new and advanced energy technologies are effective steps to diversify and manage the country’s utilization of energy sources, as well as insulate the domestic economy from potential supply shocks that would have far reaching ramifications,” Pernia added. — Ian Nicolas Cigaral
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