Trade gap narrowed slightly in February
MANILA -The Philippines’ deficit in the trade of goods narrowed by 2.7 percent in February, with the import bill exceeding export earnings by $3.88 billion.
Preliminary data at the Philippine Statistics Authority showed that the trade gap had improved slightly as two-way traffic of goods in February shrank by 14 percent to $14 billion from $16.39 billion in the same month last year.
In February, export receipts fell by 18 percent to $5.08 billion from $6.2 billion a year ago. In the same month compared, imports also fell by 12 percent to $8.95 billion from $10.19 billion.
Meanwhile, last January, the trade deficit ballooned by 27 percent while two-way traffic eased by 2 percent.
Also in January, imports grew by 4 percent while exports shrank by 13 percent.
This happened despite forecasts that developing economies in Asia would collectively grow faster this year than in 2022, thanks largely to the reopening of China.
According to the latest edition of the Asian Development Bank’s (ADB) Asian Development Outlook released earlier this month, China’s reopening could brighten the region’s growth prospects.
The ADB said the continued easing of pandemic restrictions in the world’s second-largest economy was expected to boost consumption, tourism and investment across the region in particular as well as the global economy in general.
Challenges
However, the World Bank said in its separate outlook report that developed economies were more likely to benefit from revitalized trading with China.
The updated World Bank outlook shows that economies in the region must cope with three important challenges as policymakers act to sustain and accelerate economic growth in the aftermath of COVID-19.
First is that the rising tension between major trading partners will affect trade, investment and technology flows across the region. Also, the rapid aging of populations in the major economies of East and Southeast Asia paves way for a new set of challenges and risks with implications for economic growth, fiscal balances and health.
Third, the region is seen particularly exposed to climate risks, in part due to the high density of population and economic activity along its coasts.
“De-globalization, aging and climate change are casting a shadow over the growth prospects of a region that has thrived through trade and is growing old fast,” said Aaditya Mattoo, World Bank chief economist in East Asia and Pacific. INQ
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