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Philippine trade performance likely improved in July
MANILA, Philippines — The Philippines likely recorded a stronger growth in exports and imports in July amid the continued reopening of global trade during the pandemic, according to Standard Chartered Bank.
Jonathan Koh, economist for Asia and the Philippines at Standard Chartered Bank, said the Philippines’ trade deficit likely narrowed for the second straight month to $2.4 billion in July from $2.83 billion in June.
Latest data from the Philippine Statistics Authority (PSA) showed the country’s month-on-month trade shortfall declined to $2.83 billion in June from $3.17 billion in May.
Koh said the country’s export sector likely booked a strong growth of 20.8 percent in July, supported by a favorable base effect.
“July trade data releases from other economies reflect double-digit year-on-year increases in imports from the Philippines. By product, electronics demand (especially semiconductors) likely continued to support overall export growth,” Koh said.
According to Standard Chartered Bank, the reopening of economies may also have supported external demand.
Likewise, Koh said imports grew further by 18.5 percent in July.
“The low base effect may have eased slightly, although the effect likely still provided significant support to import growth in the month,” the economist said.
Year-on-year, preliminary data released by the PSA showed the country’s trade deficit almost doubled to $2.83 billion in July from $1.42 billion in the same period last year.
Exports increased by 17.6 percent to $6.5 billion from P5.53 billion, while imports surged by 34.2 percent to $9.33 billion from $6.95 billion.
From January to July, the trade shortfall of the Philippines ballooned by 53.3 percent to $17.44 billion compared to $11.38 billion in the same period last year.
The data released by the government showed exports surged by almost 35 percent to $36 billion in the first seven months of the year from $26.7 billion in the same period last year.
Source: https://www.philstar.com/business/2021/09/07/2125291/philippine-trade-performance-likely-improved-july