Exports to remain weak, Philippines’ budget impasse

The latest export data for Asia paint a glum picture, with December figures showing exports fell in y/y terms in China, Singapore, Indonesia, Korea, Taiwan and India. With global growth likely to slow further over the coming year, the situation for Asian exports is unlikely to improve anytime soon. Meanwhile, the impasse over the 2019 budget in the Philippines is unlikely to have a big impact on growth. Despite the failure to pass a budget, federal spending will carry on, albeit within the confines of the 2018 budget.