Overseas news
Japan experienced its 1st current account deficit in 2 years in January. The deficit reached 257.6 billion yen, or $1.75 billion, surpassing market forecasts.
A current account deficit happens when the value of the products that a country imports is higher than the value of its exports. It signals that a nation is spending more on imports than it is earning from exports.
In Canada, Mark Carney has been elected as prime minister after earning 86% of the votes to lead the country’s ruling Liberal Party. He will succeed Prime Minister Justin Trudeau who resigned earlier this year.
Changes in a country’s leadership can impact investor outlook since new leaders can shift policies, setting the tone for the economy and financial markets.
Local developments
Dollar reserves increased to reach $106.65 billion by the end of February, marking a 3.3% rise from the end of January and a 4.6% growth versus the same period last year.
The latest figure is also the highest in 3 months, since November’s $108.49 billion. With more dollar reserves, the country can be more resilient and flexible when the market is volatile.
Meanwhile, the agricultural trade deficit narrowed by 2.8% to reach $1 billion in January. This happened as agricultural exports rose to hit $715.25 million.
Such exports accounted for 29.4% of the country’s total agricultural trade, which is currently valued at $2.43 billion. Imports increased by 9.4% to reach $1.72 billion, making up 15% of all imports in January.
A trade deficit is what happens when a country imports more than it exports in a certain period.
Additionally, local government agencies used P4.83 trillion or 99% of the notices of cash allocation (NCAs) issued to them in 2024, up from 98% the previous year. This was according to the Department of Budget and Management (DBM).
The DBM issues NCAs every quarter to cover the cash requirements of state agencies’ programs and projects.
Today’s news may not have a big immediate effect, though things could change in the medium and long term. It might be good for you to remain cautious with your investing decisions.
