El Niño Worsens Philippines' Trade Deficit Amid Damaged Crops and Rising Energy Demand

The Philippines' trade deficit is expected to widen due to El Niño-induced dry conditions that have damaged crops worth P6.87 billion and driven up demand for imported food and energy.

Rice, corn, vegetables, and possibly sugar are among the products that may see higher import demand if drought conditions persist, as reported by BusinessWorld Online.

Economics professor Leonardo A. Lanzona notes that El Niño is an additional burden rather than the main shock, with weaker farm output also contributing to increased food imports.

The country's trade-in-goods deficit already reached $41.56 billion in the first eight months of the year, with imports outpacing export growth by 26.34% year-on-year.