The Philippines’ trade deficit in August narrowed 33.1% YoY to US$2.41b, lower than market consensus of US$3.6b. Imports in August fell 11.8% YoY, dragged by raw materials, intermediate goods and capital goods. Particularly, imports of iron and steel, transport equipment and cereals and cereal preparations declined by 44.2%, 29.1%, 23.4% YoY respectively. Meanwhile, exports rose 0.6% YoY driven by gold (+93.2%) and electronics products (+6.6%). Net external demand should be GDP growth accretive as trade deficit narrows. However, lower imports of capital and consumptions goods suggest soft domestic demand growth.
Short Term Bond Fund
Invest in a portfolio of short-term securities and money market