The Philippines’ trade deficit increased sharply to $5.68bln in May from $3.18bln in April due to weakening global demand and persistent supply chain disruption. Exports grew by 6.2% YoY to $6.31bln, while imports soared 29.4% to $11.99bln. Meanwhile, the Philippine peso declined more than 9% this year to an all-time low of 56.35 per USD. The path seems clear for the peso to extend its drop after the country’s central bank chief ruled out propping up the currency, allowing the market to determine the peso’s value.