Asia Economic Weekly: Philippines: Current account deficit to widen sharply

Research evidence excerpt

Asia Economic Weekly: Philippines: Current account deficit to widen sharply

This Week in Focus

President Trump’s visit to China last week delivered a “constructive strategic stability”

framework between the two economies, while recent data suggests mixed growth

backdrop across the region. In China, April activity indicators point to a clear loss of

momentum, while Japan’s preliminary 1Q GDP surprised on the upside with broad-based

growth. In ASEAN, Indonesia announced a range of policy measures to strengthen fiscal

discipline, support currency stability, and sustain growth, alongside a surprise rate hike

that is likely a one-off unless currency pressures intensify further.

China: Trump’s China visit signals stability; Apr data signal loss of momentum

President Trump’s China visit delivered a with a "constructive strategic stability"

framework and a commitment to step up communications. While both leaders struck a

notably constructive tone, the outcomes point to incremental, tactical progress rather

than any meaningful breakthroughs. Economic deliverables have centered on politically

viable "quick wins," including purchase commitments and limited tariff discussions, while

deeper issues such as technology, investment, and Taiwan remain largely unresolved.

Meanwhile, April data pointed to a sharp loss of momentum, strengthening the case for

more forceful policy measures if weakness persists. Industrial production (IP) growth

eased to 4.1% yoy in April from 5.7% in March, mainly driven by a slowdown in

manufacturing. Retail sales decelerated markedly, rising just 0.2% yoy in April from 1.7%

in March, with goods sales showing a sharper slowdown. Fixed asset investment (FAI)

slipped to -1.6% yoy in Jan–Apr, while April FAI fell to -8.0% yoy as both infrastructure