Philippine peso falls amid record trade deficit numbers
Imports surged 17% as rapid economic expansion continues
According to a statement from the Philippine Statistics Authority Tuesday, the country’s trade gap widened to us$2.8 billion in May, the highest deficit seen since at least 1980, when data became available.
The number vastly exceeded the median estimate of US$1.5 billion from a Bloomberg survey of economists.
Though the shortfall is largely due to imports of equipment needed for infrastructure projects, it is removing support for the currency and the government’s credit rating. Bloomberg reports that the peso has become Asia’s worst-performing currency this year.