MNI: PBOC Conducts CNY200 Bln via MLF Thurs; Rate Cut

MNI: PBOC Sets Yuan Parity Lower At 7.1321 Thurs; -1.92% Y/Y

CHINA PBOC CONDUCTS CNY235.1 BILLION VIA 7-DAY REVERSE REPOS THURS

CHINA SETS YUAN CENTRAL PARITY AT 7.1321 THURS VS 7.1358

MNI China Daily Summary: Wednesday, July 24

MNI: PBOC Net Drains CNY203.9 Bln Via OMO Wednesday

MNI: JAPAN JUNE SERVICES PPI +3.0% Y/Y; MAY REV +2.7%

MNI BRIEF: Japan June Services PPI Rises 3.0% Vs. May's 2.7%

US Treasury Auction Calendar

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Trade Deficit Widens, Higher Imports Driven By Raw Materials & Capital Goods

PHILIPPINES
EM BulletHomepagemarkets-real-timeBulletEmerging Market News

The Philippines April trade deficit was wider than forecast. It printed at -$4761mn, versus -$3700mn expected. The deficit is back to late 2023 lows, but we remain above the Q3 2022 trough point at -$6000mn.

  • Both exports and imports surprised on the upside relative to expectations. Export growth was +26.4% y/y (+13.0% forecast and -7.3% prior), while imports were +12.6%y/y (versus -2.5% forecast and -17.7% prior).
  • The deterioration in the trade deficit comes despite a better terms of trade proxy backdrop (per Citi), although the metric remains in negative territory.
  • In terms of the detail, exports rose 1.4% m/m, as a 0.4% rise in manufacturing offset a small fall in electronic exports. In y/y terms export growth is at its highest since 2021, although base effects clearly helped.
  • On the import side, we surged 14.7% in m/m terms. Raw material imports surged 28.6% in the month, which was one of the largest contributors.
  • Capital good imports and consumer good imports were also up firmly for the second straight month, suggesting some resilience in the domestic demand backdrop.
177 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

The Philippines April trade deficit was wider than forecast. It printed at -$4761mn, versus -$3700mn expected. The deficit is back to late 2023 lows, but we remain above the Q3 2022 trough point at -$6000mn.

  • Both exports and imports surprised on the upside relative to expectations. Export growth was +26.4% y/y (+13.0% forecast and -7.3% prior), while imports were +12.6%y/y (versus -2.5% forecast and -17.7% prior).
  • The deterioration in the trade deficit comes despite a better terms of trade proxy backdrop (per Citi), although the metric remains in negative territory.
  • In terms of the detail, exports rose 1.4% m/m, as a 0.4% rise in manufacturing offset a small fall in electronic exports. In y/y terms export growth is at its highest since 2021, although base effects clearly helped.
  • On the import side, we surged 14.7% in m/m terms. Raw material imports surged 28.6% in the month, which was one of the largest contributors.
  • Capital good imports and consumer good imports were also up firmly for the second straight month, suggesting some resilience in the domestic demand backdrop.