MANILA: Following the data, the peso weakened to 52.14 to the U.S. dollar from Thursday’s close of 52.03, not far from a 12-year low of 52.45 reached in mid-February. The Philippine currency has fallen 4 percent this year.
“The trade deficit has narrowed but remains at worrisome levels pointing to an elevated current account gap,” said ANZ economist Sanjay Mathur, adding the slow growth rate in exports was “worrying.” Exports rose 0.5 percent to $5.22 billion in January from a year ago. It was the slowest growth since shipments declined 4.5 percent in November 2016. The export data for December 2017 was revised to show a year-on-year rise of 2.3 percent compared with a previous figure that showed a decline of 4.9 percent. Exports of electronic products, which account for about half of shipments from the Southeast Asian nation, rose 10.8 percent to $2.62 billion, still a healthy growth that prompted some economists to say the slower growth in overall exports may be temporary.
Philippine exports grew at their slowest pace in more than a year in January, keeping the country’s trade deficit at a high level that could further weigh on the peso, the worst performing Asian currency, which is languishing near a 12-year low.
The wide trade gap has been spurred by a sustained surge in imports of construction materials and machinery as President Rodrigo Duterte’s government overhauls outdated railways and airports.
