'Phl external position weakest in SE Asia'

The Philippines is the only country in Southeast Asia facing a sustained deterioration in its current account, setting it apart from regional peers whose external balances remain broadly stable, according to Bank of America (BofA).

- By KEISHA TA-ASAN

While most countries in Southeast Asia showed export gains in the first half, the Philippines continued to underperform, causing its trade deficit to remain high.

In a report, BofA said it assessed the state of external balances across the Association of Southeast Asian Nations (ASEAN), focusing on trade and its subsequent impact on growth.

"We find that despite the growing headwinds from external trade, current account balances across the region have remained in a manageable state, with only Philippines showing a steady trend of wider deficits, while other economies in the region remain rangebound," it said.

According to the report, the Philippines has consistently posted current account deficits over the past year, while Indonesia, Vietnam and Singapore have strengthened their external positions.

"On a long-term basis, current account trends in the region appear to show mild but consistent shifts, with Malaysia and Philippines showing a persistent trend of steady deterioration," BofA noted.