Philippines: Trade deficit balloons to record as economy gradually reopens – ING

Economists at ING bank offer their afterthoughts on the Philippines Trade Balance report, which saw the trade deficit at a new record.

Key quotes

“November trade data showed both exports and imports rising although the key metric in this release was for inbound shipments (imports) growth, which accelerated to 36.8%YoY.  This surge in imports was much greater than anticipated (28.2% forecast) and was enough to push the overall trade balance deep into deficit territory. “

“The November trade gap hit a record -$4.7bn with strong growth recorded in almost all import subcategories. “

“The Philippine economy continues to gradually reopen although new waves of Covid-19 could threaten to delay some of the recent progress.” 

“Meanwhile, exports gained 6.6%, driven in large part by the 5.6% growth of electronics exports, which comprises more than 50% of total exports.”