Philippines trade deficit likely narrowed on stronger export growth

The Philippines will release March trade balance and import data on 26 May. The trade balance is expected to have narrowed to a deficit of USD 400mn, from a deficit of USD 837mn in February. 

Export growth improved in March to 2.1% y/y from a decline of 3% in February, which likely helped reduce the trade deficit. 

Standard Chartered notes:

• We expect a pick-up in external demand over the rest of the year, which should also fuel demand for intermediate goods. 
  
  
• We expect higher growth in electronic imports to have supported March import growth - we forecast 5.3% y/y of overall import growth, versus 13.4% in February.