Trade gap nears $6B; seen widening further
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HE national government expects the country to continue posting trade deficits especially when big-ticket infrastructure projects are already in full swing, according to the National Economic and Development Authority (Neda). In a briefing on Tuesday, Socioeconomic Planning Secretary Arsenio M. Balisacan said trade deficits are expected to grow since many construction materials are imported from various parts of the world. The Philippine Statistics Authority (PSA) said the trade deficit that neared the $6-billion mark was the highest in the PSA’s records. The trade deficit surged 75.4 percent in June since the country’s import bill grew 26 percent and export receipts inched by a percent during
the period. “We are also likely to see large importations for construction because we are ramping up and continuing the rapid growth in construction spending. If we do, we would expect that trade deficits [will] continue and [will] increase,” Balisacan said. However, Balisacan noted that while this is the case, importing commodities that create value for the economy would also boost the country’s export sector. He added that investments in infrastructure would also enhance the competitiveness of the Philippine economy. Balisacan also noted that while exports posted minimal growth of only 1 percent in June, he is not worried, given that the Philippines has other sources of foreign exchange.
This includes Overseas Filipino remittances as well as tourism sector earnings. “We continue to [receive] robust remittances [and we are] ramping up support for tourism which w ill be a major driver for foreign exchange earnings. [In terms of ] investments, we are counting on the legislative reforms that the prev ious administration was able to pass and ramp up the groundwork for making those reforms already available for the business community. That should again improve our competitiveness and our ex por t potential,” Balisacan ex plained. Based on the PSA data, the countr y’s trade deficit w idened 66 percent in the Januar y to June period while total trade grew 18.8 percent.
Total ex ports rose 7.1 percent and imports grew 26.7 percent in the first semester of 2022. The data showed the country’s exports that posted triple-digit growth rates in June were Other Coconut Products which grew 243.4 percent; Copper concentrates, 210.4 percent; Mangoes, 170.3 percent; Unmanufactured tobacco, 145.1 percent; Iron and steel, 133.2 percent; and gold, 102.3 percent. In the first semester, ex ports t hat posted t he highest g row t h rates were chromium ore which surged 690.4 percent; Other Coconut Products, 217.9 percent; telecommunication, 180.4 percent; and Coconut oil, 119 percent. See “Neda,” A2
BusinessMirror A broader look at today’s business
www.businessmirror.com.ph
Wednesday, August 10, 2022 Vol. 17 No. 306
COVID-HIT SECTORS IN FOCUS; GROWTH AT 7.4% n
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
By Cai U. Ordinario
F
@caiordinario
OCUSING on sectors severely scarred by the pandemic will make the country’s GDP growth more sustainable, according to the National Economic and Development Authority (Neda) and local economists. On Tuesday, the Philippine Statistics Authority (PSA) reported that the economy posted a growth of 7.4 percent in the second quarter. This is slower than the 8.2 percent posted in the first quarter of the year and the 12 percent recorded in the second quarter of last year. In the first semester of the year, the economy posted an average growth of 7.8 percent. Socioeconomic Planning Secretary Arsenio M. Balisacan said this means the economy only needs to post a growth of 7.2 percent in the second semester to attain the high end of the 6.5 to 7.5 percent GDP growth target this year. “We must apply the same or even better risk management protocols and protect the most vulnerable against high inflation and other shocks and scarring due to Covid-19,” Balisacan said. “There will be many more transformations in the social and economic sectors. The overall goal is to reinvigorate job creation and reduce poverty.” Oxford Economics said the ongoing recovery of the Philippine economy “will be bumpy” given the Ukraine war, China’s zero-Covid policy, and global See “GDP,” A2
PBBM JOINS PRESIDENTIAL STATE FUNERAL FOR FVR
Economic chiefs stay upbeat amid slow growth By Bianca Cuaresma @BcuaresmaBM
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By Samuel P. Medenilla @sam_medenilla
& Rene Acosta
@reneacostaBM
F
ORMER President Fidel V. Ramos was laid to rest at the Libingan ng mga Bayani in Taguig City on Tuesday in a presidential state funeral—the first of its kind in the last two decades. No less than President Ferdinand “Bongbong” R. Marcos Jr. was among those who participated in the over hourlong ceremony, which was last held in 1997 See “FVR,” A2
WIDOW and former first lady Amelita Ramos and military chief Lieutenant General Bartolome Vicente Bacarro stand beside the flag-draped casket of her husband, the late former President Fidel V. Ramos, during his state funeral at the Libingan ng mga Bayani in Taguig on Tuesday, August 9, 2022. Ramos was laid to rest in a state funeral Tuesday, hailed as an ex-general, who backed then helped oust a dictatorship and became a defender of democracy and can-do reformist in his country. Ramos died at age 94. AP/AARON FAVILA
OP economic managers in the country say the slower growth of the Philippines is well-within their expectations, and will still be on its way to reaching the government’s target for the year. Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla told reporters on Tuesday that the GDP growth rate—announced at 7.4 percent for the second quarter of the year—is within their forecast range. The governor, however, did not comment on how the new data will affect their upcoming monetary policy decisions. Department of Finance (DOF) Secretary Benjamin Diokno, meanwhile, said he is “reassuring the public” that “the economy is on a steady path to recovery and expansion” amid the slowdown of the economy from the revised 8.2 percent growth in the first quarter of the year. “Our growth figure of 7.4 percent of GDP sits comfortably at the higher end of our target band for the year. This is an impressive achievement, more so with the ongoing challenges of rising inflation worldwide and an uncertain global political economy,” Diokno said. The Development Budget Coordination Committee’s (DBCC) has set a GDP growth target of 6.5 percent to 7.5 percent for 2022. “All three major sectors—agriculture, industry, See “BSP,” A2
PESO EXCHANGE RATES n US 55.5940 n JAPAN 0.4119 n UK 67.1742 n HK 7.0821 n CHINA 8.2352 n SINGAPORE 40.3293 n AUSTRALIA 38.8157 n EU 56.6781 n KOREA 0.0428 n SAUDI ARABIA 14.7923 Source: BSP (9 August 2022)