The Philippines would possibly be providing more of its products to the rest of the world in the coming year as development in exports is foreseen in 2018 by the Standard Chartered Bank.
A 12 percent growth in the country’s exports, as well as 10 percent in imports, is expected, according to Standard Chartered economist for Asia, Chidu Narayanan.
He also noted, however, the possibility of a gradual progress in the coming year due to lower demand from China.
Exports of electronic products climbed up 14 percent, while a decrease in apparel exports and other manufactured products posed a setback to the growth.
Still, in spite of the projected increase in exports in 2018, the trade deficit is likely to carry on next year as total imports still overpower export figures.
In a recent report by the Philippine Statistics Authority (PSA), it has been shown that there was an increase in total exports by 6.6 percent as of October 2017, part of the 11-month streak of the country in showing progress in its exports.
At the same time, total imports grew by 13.1 percent and thus gave a bigger trade deficit, around $2.84 billion, compared to October 2016’s $2.22 billion.
Narayanan also explained that the increase of imports is because of the swift imports of raw materials, specifically semi-processed raw materials.
Raw materials make up 40 percent of the country’s total imports. In October, they rose 22 percent.
Iron and steel imports, as well as metal goods, also experienced increase.
The Standard Chartered economist, nevertheless, said that the deficit is not as concerning as the numbers suggest as they also exhibit positive indications.
He voiced that the increased volume of iron and steel imports for construction is a “good sign, certainly better than imports being driven by mineral fuels, as has been the case so far this year.”
Story first appeared here.