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.