GENERAL FORECASTS AND OBSERVATIONS
The Philippines is one of the fastest-growing and flourishing countries in the world. Every year the nation registers an impressive growth percentage in all its domains such as infrastructure, economy, GDP, employment, etc. However, due to prevailing economic and international tensions, the growth rate of the Philippines is forecast to be just 5.8–6% in 2023. If we talk about global growth, then it is estimated to be just 2.5–3%.
Based on the analysis of various experts and economists who are in this field of study, if the global financial stress kept on going this year, then the growth percentage would fall significantly, which would in turn affect the growth rate of each nation. To keep up with the growth rate, the financial stress in the global economy should get over and private spending should be encouraged, which will promote government expenditure on infrastructure, healthcare, and other necessary domains in the Philippines.
WHAT DOES THE DEVELOPMENT BANK HAVE TO SAY ABOUT THE PHILIPPINES TRADE DATA?
Recently, on April 4, 2023, the Asian Development Bank, or ADB, said that the year 2023 will remain simple for the Philippines in terms of imports and exports. The growth rate of the Philippines will also remain moderate and simple, with not much growth or decline as compared to 2022. ADB mentioned that although growth would remain low, the nation would not come off the expansion track.
As per the Philippines Trade Data for the year 2023, it is forecasted that the growth will remain close to 6%, keeping in view all the factors such as manufacturing, public spending, and retail trade. Major causes, as discussed before, are the collapse or slowdown of economies, rising inflation, and cross-country tensions.
According to a further study done by ADB, the Philippines will face inflation of about 6.2% in the ongoing year, and furthermore, the inflation will fall to 4% in 2024.
IMPORT AND EXPORT INSIGHTS OF THE PHILIPPINES
On comparing the Philippines Trade Data for the months of January 2022 and 2023, the total trade, including imports and exports, fell by 2.4% and reached USD 16.2 billion. In the same month, out of total trade, close to 67.7% were imports, whereas 32.3% were exports. The country claimed that the imports done by the Philippines are twice that of exports, which created a trade deficit at the start of the year itself.
Based on the Philippines export data for the month of January 2023, the exports touched USD 5.23 billion, which was a decline of 13.5%, whereas the Philippines Import Data registered a growth of 3.9% and reached USD 10.97 billion.
The exports of electronic items, especially semiconductors, were the top exporting product of the Philippines, which had a stake of 54.2% in total exports and made the nation earn USD 2.83 billion. Other noticeable exports were mineral products and items. The major export partners of the Philippines for the month of January 2023 were Japan, the USA, China, and Hong Kong.
Just like exports, the Philippines’ major imports were also electronic items like spare parts, tools, small gadgets, and appliances. Other major imports were mineral oils and fuels, coal, and lubricants. If we talk about the major import partners as mentioned in the Philippines Import Data for January 2023, then they are China, Indonesia, South Korea, and Japan.
CONCLUSION AND OUR LAST VERDICT
The Philippines started to experience a trade deficit at the very beginning of 2023. As per the officials, the nation imports double what it exports. The country needs a strong push to cover this trade deficit and has to work on its trading tactics and investment policies.
Although the Philippines has had many commercial networks with countries like Mexico and America since 1565, other nations developed themselves and implemented numerous strategies to grow and expand, but the Philippines didn’t try anything innovative like them, because of which the Philippines needs a “shot in the arm” so that it can work upon new tactics and strategies to boost its development and growth speeds.
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BONUS NEWS UPDATE
This news update is from the United States of America, which is planning to default on its debt on June 1, 2023. Debt default is a situation when a country doesn’t have adequate funds to pay off its debts and outstanding bills. This situation is not new for America, as it has defaulted on its debt several times.
The implications of this debt default could be catastrophic for some. Some of the major implications of this debt default, if it lasts for weeks, could be:
A complete sell-off of the US debt
All federal benefits, such as security, Medicaid, and housing assistance, would be suspended.
More volatile stock market
Rise in the interest rates for taking loans
Expensive credit cards
Rates of mortgage will shoot up
Delayed tax refunds
To learn more, stay in touch with us on our social media platforms and our website: https://www.tradeimex.in, or simply drop your query at info@tradeimex.in.
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