The country’s trade deficit is expected to widen to $6.63 billion next year, about 18.6 percent bigger than the government assumptions for 2005, which is $5.58 billion.
Recent adjustments to the trade data by the National Statistics Office further indicate that the trade deficit this year will expand by 28.24 percent from 2004’s $4.35 billion.
Since 2002, the Philippines has been recording rising trade gap or the excess of imports over exports from $4 billion three years ago to $4.24 billion in 2003 and $4.35 billion last year.
Budget Secretary Romulo Neri said the government expects imports to grow 11 percent to $53.77 billion next year while exports, hopefully, will expand by ten percent to $47.14 billion.
On the other hand for 2005, Neri said they expect imports to hit $48.44 billion, ten percent higher from 2004’s $44.03 billion. Exports are also projected to increase eight percent to $42.85 billion from $39.68 billion last year.
"These are our approved macro-economic assumptions for 2005 and 2006," Neri told reporters over the weekend. The Development Budget Coordinating Committee will also meet next week to review other official government projections including the growth in gross domestic product and full-year inflation rate, on the back of rising fuel costs. (LCC)
