Philippines posts record US$6b trade deficit in August

THE Philippines posted a trade deficit of US$6 billion for August, its biggest monthly gap on record, as the value of imports sustained a double-digit pace of growth, while exports contracted, government data showed on Tuesday (Oct 11).

Imports rose 26 per cent from a year earlier to US$12.4 billion, while exports fell for the second straight month, by 2 per cent to US$6.4 billion, the Philippine Statistics Authority said.

Ahead of the release of the data, ING senior economist Nicholas Mapa said that the trade deficit was likely to test historic lows and “put pressure on the Philippine peso in the near term”.

Separately, Philippines President Ferdinand Marcos Jr said on Tuesday that the country intends to maximise its oil and gas resources, and will keep the tax breaks in the energy sector to attract more investors.

The Energy Department recently allowed Nido Petroleum Philippines to proceed with the site survey of its drilling locations this quarter, which will pave the way for the drilling of two wells in the first half of 2023, Marcos said in a statement. Nido Petroleum is a unit of Australian firm Sacgasco Ltd.

The Cadlao oil field off the nation’s western coast may have early oil production toward the second half of 2023, he noted. Recoverable volumes from the oil field are expected at 5 to 6 million barrels, he added.

SEE ALSO

Philippine tycoon postpones US$474m prime infrastructure IPO on bearish market

Philippines' Marcos open to buying Russian fuel, proposes new Myanmar approach

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

Marcos has pledged to prioritise energy security and lowering power costs, as imported oil fans inflation. His administration has engaged in fuel talks with Russia, and is also seeking a compromise with Beijing on oil exploration in the disputed South China Sea. REUTERS, BLOOMBERG