RP trade deficit narrows

RP trade deficit narrows

MANILA (Reuters): The Philippines merchandise trade deficit
narrowed in the first five months of the year as the current
economic slowdown reduced imports and economists yesterday said
the trend will likely hold.

The National Statistics Office reported that the merchandise
trade deficit from January to May fell 66.1 percent to $1.603
billion from the year-earlier $4.725 billion.

Imports shrank 8.2 percent to $13.118 billion in the five-
month period against the year-earlier $14.296 billion, while
exports grew 20.3 percent to $11.515 billion from the year-ago
$9.571 billion period.

"This confirms that there's a slowdown in the economy. The
improvement in the balance of trade is not a positive
development. More than anything it shows a weakening economy,"
said Francis Varela, vice-president at AsianBank Corp.

Philippine industries usually import raw materials and capital
equipment for expansion requirements.