Overseas news
The US goods trade deficit widened 11.1% to reach $96.6 billion in May, primarily due to a $9.7 billion drop in exports.
However, a steady flow of imports suggests that trade is still poised to significantly contribute to the country’s 2nd quarter gross domestic product (GDP).
A trade deficit is what happens when a country imports more than it exports in a certain period. The US previously introduced higher tariffs on many imported goods in an effort to address the trade gap.
Relatedly, the US economy contracted more than initially reported in the 1st quarter. Revised data showed the GDP declined by 0.5% annually due to weaker consumer spending and the impact of US tariffs.
This was lower than the initial estimate of a 0.2% contraction. GDP is an indicator of an economy’s health since it reflects how much a country has created in terms of products and services.
Local developments
The Development Budget Coordination Committee (DBCC) has lowered the Philippines’ GDP growth projection for 2025 to 5.5-6.5% from the initial 6-8% goal.
The revised target considers “heightened global uncertainties” such as the ongoing Middle East conflict and newly raised US tariffs.
These factors can have an impact on the Philippine economy due to their possible effects on global trade relations and oil prices, which may ultimately affect the flow and costs of goods and services.
Meanwhile, the Securities and Exchange Commission (SEC) will reduce fees for corporate document requests by 50% effective July 1. The SEC aims to improve access to corporate data and boost investor protection.
Additionally, the government’s budget deficit shrank 17.01% in May, dropping to P145.2 billion from P174.9 billion the previous year, according to the Bureau of the Treasury (BTr).
A budget deficit happens when the government spends more than it earns. It can be lessened by increasing revenue (usually through taxes) and/or cutting spending.
The news shows potential for both positive and negative developments, though there are no concrete signs of what’s ahead. You may want to avoid making big changes to your portfolio and stay liquid for now.
