Philippine trade deficit likely to have widened slightly in July

The Philippine trade data for the month of July is set to release tomorrow. According to a DBS Bank research report, the trade balance is likely to have come in at a deficit of USD 3.38 billion, widening from the previous month’s deficit of USD 2.47 billion.

Exports are expected to have rebounded, growing 4.4 percent year-on-year in July, an acceleration from 1.5 percent. Meanwhile, imports are likely to have contracted 3.7 percent.

“We maintain our view that Philippines might continue to cut policy rate before year end to support growth slowdown”, added DBS Bank.