Obligation Filipinas 3.75% ( US718286CG02 ) en USD

Filipinas

100 % ▲

Philippines

US718286CG02 ( en USD )

3.75% par an ( paiement semestriel )

13/01/2029

Prospectus brochure de l'obligation Philippines US718286CG02 en USD 3.75%, échéance 13/01/2029

14/07/2026 ( Dans 136 jours )

Les Philippines sont un archipel de plus de 7 000 îles situées en Asie du Sud-Est, connues pour leur biodiversité, leur culture riche et leur histoire coloniale complexe.

L'Obligation émise par Filipinas ( Philippines ) , en USD, avec le code ISIN US718286CG02, paye un coupon de 3.75% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 13/01/2029

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Table of Contents
Filed Pursuant to Rule 424(b)(5)
Registration No. 333-208780

PROSPECTUS SUPPLEMENT TO PROSPECTUS DATED JANUARY 2, 2018

US$1,500,000,000
Republic of the Philippines
3.750% Global Bonds due 2029

The Republic of the Philippines (the "Republic") will pay interest on the global bonds on January 14 and July 14 in each year. The first interest payment on the global
bonds will be made on July 14, 2019 in respect of the period from (and including) January 14, 2019 to (but excluding) July 14, 2019. The Republic may not redeem
the global bonds prior to their maturity. The global bonds will mature at par on January 14, 2029.
The global bonds will be the direct, unconditional, unsecured and general obligations of the Republic and will rank without any preference among themselves and
equally with all other present and future unsecured and unsubordinated external indebtedness of the Republic. It is understood that this provision shall not be construed
so as to require the Republic to make payments under the global bonds ratably with payments being made under any other external indebtedness of the Republic.
The global bonds will be designated Collective Action Securities issued under a fiscal agency agreement, as supplemented, and constitute a separate series of debt
securities under the fiscal agency agreement. The fiscal agency agreement contains provisions regarding future modifications to the terms of the global bonds that differ
from those applicable to the Republic's outstanding external public indebtedness issued prior to February 1, 2018. Under these provisions, which are described in the
section entitled "Description of the Global Bonds," the Republic may, among other things, amend the payment provisions of any series of debt securities (including the
global bonds) and other reserve matters listed in the fiscal agency agreement with the consent of the holders of: (i) with respect to a single series of debt securities,
more than 75% of the aggregate principal amount of the outstanding debt securities of such series; (ii) with respect to two or more series of debt securities, if certain
"uniformly applicable" requirements are met, more than 75% of the aggregate principal amount of the outstanding debt securities of all series affected by the proposed
modification, taken in the aggregate; or (iii) with respect to two or more series of debt securities, more than 662/3% of the aggregate principal amount of the outstanding
debt securities of all series affected by the proposed modification, taken in the aggregate, and more than 50% of the aggregate principal amount of the outstanding debt
securities of each series affected by the proposed modification, taken individually.
The offering of the global bonds is conditional on the receipt of certain approvals of the Monetary Board of the Bangko Sentral ng Pilipinas, the central bank of the
Republic.
The global bonds are being offered globally for sale in the jurisdictions where it is lawful to make such offers and sales. Application has been made to admit the global
bonds to listing on the Official List of the Luxembourg Stock Exchange and to trading on the Euro MTF Market ("Euro MTF"). We cannot guarantee that the
application to the Luxembourg Stock Exchange will be approved, and settlement of the global bonds is not conditional on obtaining the listing.
We expect to deliver the global bonds to investors in registered book-entry form only through the facilities of The Depository Trust Company ("DTC"), Clearstream
Banking, S.A. ("Clearstream, Luxembourg"), and Euroclear Bank, S.A./N.V. ("Euroclear" or the "Euroclear System"), on or about January 14, 2019.

Per Bond
Total

Price to investors

99.736%
US$1,496,040,000
Underwriting discounts and commissions

0.05%
US$
750,000
Proceeds, before expenses, to the Republic

99.686%
US$1,495,290,000
Neither the Securities and Exchange Commission nor any other regulatory body has approved or disapproved of these securities or determined if this
prospectus supplement or the accompanying prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

Joint Global Coordinators, Joint Lead Managers and Joint Bookrunners

Bank of China

J.P. Morgan

Standard Chartered Bank
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Joint Lead Managers and Joint Bookrunners

Citigroup

Credit Suisse

Goldman Sachs

UBS

The date of this prospectus supplement is January 7, 2019.
Table of Contents

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Table of Contents
TABLE OF CONTENTS

Prospectus Supplement

Pages
INTRODUCTORY STATEMENTS
S-4
SUMMARY OF THE OFFERING
S-5
USE OF PROCEEDS
S-8
RECENT DEVELOPMENTS
S-9
DESCRIPTION OF THE GLOBAL BONDS
S-18
GLOBAL CLEARANCE AND SETTLEMENT
S-25
TAXATION
S-28
UNDERWRITING
S-31
LEGAL MATTERS
S-39
GENERAL INFORMATION
S-39
TABLE OF CONTENTS

Prospectus

Pages
ABOUT THIS PROSPECTUS

2
FORWARD-LOOKING STATEMENTS

3
DATA DISSEMINATION

3
USE OF PROCEEDS

3
RATINGS

4
DESCRIPTION OF THE SECURITIES

5
Description of the Debt Securities

5
Description of the Warrants

14
Limitations on Issuance of Bearer Debt Securities

15
Ranking Provisions of the Debt Securities

16
COLLECTIVE ACTION SECURITIES

17
TAXATION

21
PLAN OF DISTRIBUTION

31
VALIDITY OF THE SECURITIES

33
AUTHORIZED REPRESENTATIVE IN THE UNITED STATES

33
EXPERTS; OFFICIAL STATEMENTS AND DOCUMENTS

33
FURTHER INFORMATION

33

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You should read this prospectus supplement along with the prospectus that accompanies it. You should rely only on the information
contained or incorporated by reference in this document and the accompanying prospectus or to which we have referred you. We have not
authorized anyone to provide you with information that is different. This document may only be used where it is legal to sell these securities. This
document and the accompanying prospectus may only be used for the purposes for which they have been published. The information in this
prospectus supplement and the accompanying prospectus may only be accurate as of the date of this prospectus supplement or the accompanying
prospectus, as applicable. Terms used herein but not otherwise defined shall have the meaning given to them in the prospectus that accompanies
this prospectus supplement.
INTRODUCTORY STATEMENTS
The Republic accepts responsibility for the information that is contained in this prospectus supplement and the prospectus that accompanies it. To the
best of the knowledge and belief of the Republic (which has taken all reasonable care to ensure that such is the case), the information contained in this
prospectus supplement and the accompanying prospectus is in accordance with the facts and does not omit anything likely to affect the import of such
information.
The Republic is a foreign sovereign state. Consequently, it may be difficult for you to obtain or realize upon judgments of courts in the United States
against the Republic. See "Description of the Securities--Description of the Debt Securities--Jurisdiction and Enforceability" in the accompanying
prospectus.
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The distribution of this prospectus supplement and the accompanying prospectus and the offering of the global bonds may be legally restricted in
some countries. If you wish to distribute this prospectus supplement or the accompanying prospectus, you should observe any applicable restrictions. This
prospectus supplement and the accompanying prospectus should not be considered an offer, and it is prohibited to use them to make an offer, in any state
or country in which the making of the offering of the global bonds is prohibited. For a description of some restrictions on the offering and sale of the global
bonds and the distribution of this prospectus supplement and the accompanying prospectus, see "Underwriting" on page S-31.
This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom and (ii) to investment
professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net
worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together
being referred to as "relevant persons"). The global bonds are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise
acquire such global bonds will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document
or any of its contents.
Notification under Section 309B(1) of the Securities and Futures Act, Chapter 289 of Singapore--The global bonds are prescribed capital
markets products (as defined in the Securities and Futures (Capital Markets Products) Regulations 2018) and Excluded Investment Products (as defined in
MAS Notices SFA 04-N12: Notice on the Sale of Investment Products and MAS Notice FAA-N16: Notice on Recommendations on Investment Products).
All references in this prospectus supplement (a) to the "Republic" or the "Philippines" are to the Republic of the Philippines, (b) to the "Government"
are to the national government of the Philippines and (c) to "Bangko Sentral" or "BSP" are to Bangko Sentral ng Pilipinas, the central bank of the
Philippines.
Unless otherwise indicated, all references in this prospectus supplement to "?" are to the lawful national currency of the Philippines, those to
"dollars," "U.S. dollars," "US$" or "$" are to the lawful currency of the United States of America.

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SUMMARY OF THE OFFERING
This summary highlights information contained elsewhere in this prospectus supplement and the accompanying prospectus. You should read the
entire prospectus supplement and the accompanying prospectus carefully.

Issuer
Republic of the Philippines.

Bonds
US$1,500,000,000 3.750% Global Bonds due 2029.

Interest
The global bonds will bear interest at 3.750% from January 14, 2019, payable semi-annually
in arrears.

Issue Date
January 14, 2019.

Interest Payment Dates
January 14 and July 14 of each year, payable to the persons who are registered holders
thereof at the close of business on the preceding January 9 or July 9, as applicable, whether or
not a business day. The first interest payment will be made on July 14, 2019 in respect of the
period from (and including) January 14, 2019 to (but excluding) July 14, 2019.

Maturity Date
January 14, 2029.

Issuer Redemption
The Republic may not redeem the global bonds prior to maturity.

Status of Bonds
The global bonds will be direct, unconditional, unsecured and general obligations of the
Republic and will rank without any preference among themselves and equally with all other
present and future unsecured and unsubordinated External Indebtedness (as defined in the
accompanying prospectus) of the Republic. It is understood that this provision shall not be
construed so as to require the Republic to make payments under the global bonds ratably
with payments being made under any other external indebtedness of the Republic. The full
faith and credit of the Republic will be pledged for the due and punctual payment of all
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principal and interest on the global bonds. See "Description of the Securities--Description of
the Debt Securities--Status of Bonds" in the accompanying prospectus and "Description of
the Global Bonds."

Negative Pledge
With certain exceptions, the Republic has agreed that it will not create or permit to subsist
any Lien (as defined in the accompanying prospectus) on its revenues or assets to secure
External Public Indebtedness (as defined in the accompanying prospectus) of the Republic,
unless at the same time or prior thereto, the global bonds are secured at least equally and
ratably with such External Public Indebtedness. The international reserves of Bangko Sentral
represent substantially all of the official gross international reserves of the Republic. Because
Bangko Sentral is an independent entity, the Republic and Bangko Sentral believe that the
international reserves

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owned by Bangko Sentral are not subject to the negative pledge covenant in the global bonds
and that Bangko Sentral could in the future incur External Public Indebtedness secured by

such reserves without securing amounts payable under the global bonds. See "Description of
the Securities--Description of the Debt Securities--Negative Pledge Covenant" in the
accompanying prospectus.

Taxation
The Republic will make all payments of principal and interest in respect of the global bonds
free and clear of, and without withholding or deducting, any present or future taxes of any
nature imposed by or within the Republic, unless required by law. In that event, the Republic
will pay additional amounts so that the holders of the global bonds receive the amounts that
would have been received by them had no withholding or deduction been required, subject to
certain exceptions. See "Description of the Securities--Description of the Debt Securities--
Additional Amounts" in the accompanying prospectus.

Collective Action Clauses
The global bonds will be designated Collective Action Securities issued under a fiscal
agency agreement, as supplemented, and constitute a separate series of debt securities under
the fiscal agency agreement. The fiscal agency agreement contains provisions regarding
future modifications to the terms of the global bonds that differ from those applicable to the
Republic's outstanding external public indebtedness issued prior to February 1, 2018. Under
these provisions, which are described in the section entitled "Description of the Global
Bonds," the Republic may, among other things, amend the payment provisions of any series
of debt securities (including the global bonds) and other reserve matters listed in the fiscal
agency agreement with the consent of the holders of: (i) with respect to a single series of
debt securities, more than 75% of the aggregate principal amount of the outstanding debt
securities of such series; (ii) with respect to two or more series of debt securities, if certain
"uniformly applicable" requirements are met, more than 75% of the aggregate principal
amount of the outstanding debt securities of all series affected by the proposed modification,
taken in the aggregate; or (iii) with respect to two or more series of debt securities, more than
662/3% of the aggregate principal amount of the outstanding debt securities of all series
affected by the proposed modification, taken in the aggregate, and more than 50% of the
aggregate principal amount of the outstanding debt securities of each series affected by the
proposed modification, taken individually.

Cross-Defaults
Events of default with respect to the global bonds include (i) if the Republic fails to make a
payment of principal, premium, prepayment charge or interest when due on any External
Public Indebtedness with a principal amount equal to or greater than $25,000,000 or its
equivalent, and this failure continues beyond the applicable grace period; or (ii) if any
External Public Indebtedness of the Republic or the central monetary authority in principal
amount equal to or greater than $25,000,000 is accelerated, other than by optional or
mandatory

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prepayment or redemption. See "Collective Action Securities--Events of Default: Cross

Default and Cross Acceleration" in the accompanying prospectus.

Listing
The Republic is offering the global bonds for sale in the United States and elsewhere where
such offer and sale is permitted. Application has been made to admit the global bonds to
listing on the Official List of the Luxembourg Stock Exchange and to trading on the Euro
MTF. The Republic cannot guarantee that the application to the Luxembourg Stock
Exchange will be approved, and settlement of the global bonds is not conditional on
obtaining the listing.

Form, Denomination and Registration
The global bonds will be issued in fully registered form in minimum denominations of
$200,000 and integral multiples of $1,000 in excess thereof. The global bonds will be
represented by one or more global securities registered in the name of a depositary, its
nominee or a custodian. Beneficial interests in the global securities will be shown on, and the
transfer thereof will be effected only through, records maintained by the depositary and its
direct and indirect participants.

Settlement of all secondary market trading activity in the global bonds will be made in

immediately available funds. See "Description of the Securities--Description of the Debt
Securities--Global Securities" in the accompanying prospectus.

Further Issues
The Republic may from time to time, without notice to or the consent of the registered
holders of the global bonds, issue further bonds which will form a single series with the
global bonds. See "Collective Action Securities--Further Issues of Debt Securities" in the
accompanying prospectus.

Use of Proceeds
The Republic intends to use the net cash proceeds from the sale of the global bonds for
general purposes of the Republic, including budgetary support.

Fiscal Agent
The Bank of New York Mellon (as successor in interest to JPMorgan Chase Bank, N.A.).

Governing Law
The Fiscal Agency Agreement (as defined below) and the global bonds will be governed by
and interpreted in accordance with the laws of the State of New York. The laws of the
Republic will govern all matters governing authorization and execution of the Fiscal Agency
Agreement and the global bonds by the Republic.

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USE OF PROCEEDS
The Republic intends to use the net cash proceeds from the sale of the global bonds for general purposes of the Republic, including budgetary
support. None of the underwriters shall have any responsibility for the application of the net cash proceeds from the sale of the global bonds.

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RECENT DEVELOPMENTS
The information contained in this section supplements the information about the Republic corresponding to the headings below that is contained in
Exhibit 99.D to the Republic's annual report on Form 18-K for the fiscal year ended December 31, 2017. To the extent the information in this section
differs from the information contained in such annual report, you should rely on the information in this section. Capitalized terms not defined in this
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section have the meanings ascribed to them in the annual report.
Recent Economic Indicators
Preliminary data indicate that gross domestic product, or GDP, growth and gross national income, or GNI, growth at constant 2000 prices for the nine
months ended September 30, 2018 was 6.3% and 6.1%, respectively. The average inflation rate for 2018 was 5.2%. The 91-day T-bill rate was 4.8% as of
October 31, 2018. Preliminary data indicate that gross and net international reserves as of November 30, 2018 were $75.7 billion, equal to 6.7 months of
average imports of goods and payment of services and primary income that can be financed by reserves. Preliminary data indicate that the growth rate of
domestic credit from September 30, 2017 to September 30, 2018 was 15.0%.
Gross Domestic Product
Preliminary data indicate that in the first nine months of 2018, GDP grew by 6.3%, compared with growth of 6.8% in the first nine months of 2017.
The largest contributor to the decreased rate of growth in the first nine months of 2018 was a decrease in the rate of growth in the manufacturing subsector,
from growth of 8.6% in the first nine months of 2017 to growth of 5.7% over the same period in 2018. Decreased rates of growth in the trade and repair of
motor vehicles, motorcycles, personal and household goods subsector, financial intermediation subsector and real estate, renting and business activities
subsector, from growth of 6.8%, 8.4% and 7.7%, respectively, in the first nine months of 2017, to growth of 6.0%, 7.7% and 4.8%, respectively, over the
same period in 2018, were also contributors to this decrease. Partially offsetting the performance of these subsectors were increases in the rate of growth in
the construction subsector and the public administration and defense; compulsory social security subsector, from a growth of 5.7% and 7.5%, respectively,
in the first nine months of 2017, to a growth of 13.3% and 15.4%, respectively, over the same period in 2018. Growth in the other services subsector also
increased from a growth of 6.5% in the first nine months of 2017 to growth of 7.1% over the same period in 2018. GNI in the first nine months of 2018
grew by 6.1%, compared to growth of 6.7% in the first nine months of 2017. The GNI growth rate was slightly lower than the GDP growth rate due to the
relatively lower growth in net primary income of 4.9% in the first nine months of 2018, compared to growth in GDP of 6.3% in the first nine months of
2018. The growth in net primary income of 4.9% in the first nine months of 2018 represented a decrease from the 6.7% growth in net primary income over
the same period in 2017.
Principal Sectors of the Economy
Agriculture, Hunting, Forestry and Fishing Sector
Preliminary data indicate that in the first nine months of 2018, production in the agriculture, hunting, forestry and fishing sector grew by 0.4%,
compared to a growth of 4.6% over the same period in 2017. The decreased rate of growth was primarily a result of a decrease in sugarcane production,
which recorded a contraction of 20.5% in the first nine months of 2018, compared to growth of 35.2% over the same period in 2018, as well as a decrease
in corn production from growth of 14.4% in the first nine months of 2017 to a contraction of 4.9% over the same period in 2018. These factors were
partially offset by higher poultry production and agricultural activities and services production, which recorded growth of 5.3% and 4.4%, respectively, in
the first nine months of 2018, compared to growth of 4.3% and 4.2%, respectively, over the same period in 2017.

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Industry Sector
Preliminary data indicate that in the first nine months of 2018, the industry sector grew by 6.8%, compared with growth of 7.2% in the first nine
months of 2017. The lower rate of growth was mainly due to a decrease in the growth of the manufacturing subsector, which decreased from growth of
8.6% in the first nine months of 2017 to growth of 5.7% in the first nine months of 2018. The mining and quarrying subsector also decreased from a
growth of 3.3% in the first nine months of 2017 to a contraction of 1.5% in the first nine months of 2018. These factors were partially offset by increased
growth in the construction subsector and electricity, gas and water supply subsector, from growth of 5.7% and 2.8%, respectively, in the first nine months
of 2017, to growth of 13.3% and 5.0%, respectively, in the first nine months of 2018.
Manufacturing Subsector
Preliminary data indicate that in the first nine months of 2018, the manufacturing subsector grew by 5.7%, compared to growth of 8.6% in the first
nine months of 2017. The lower rate of growth was mainly due to a lower growth in the food manufacturing subsector, from growth of 6.0% in the first
nine months of 2017, to growth of 4.2% in the first nine months of 2018. These factors were partially offset by increases in growth in the radio, television
and communication equipment and apparatus subsector, from growth of 12.5% in the first nine months of 2017 to growth of 13.1% in the first nine months
of 2018.
Service Sector
Preliminary data indicate that in the first nine months of 2018, the service sector grew by 6.8%, which remained stable compared to the growth of
6.8% recorded in the first nine months of 2017. The stable rate of growth was mainly due to lower growth in trade and repair of motor vehicles,
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motorcycles, personal and household goods subsector and real estate, renting and business activities subsector, which grew by 6.0% and 4.8%, respectively,
in the first nine months of 2018, compared to growth of 6.8% and 7.7%, respectively, over the same period in 2017. These factors were partially offset by
higher growth in the transport, storage and communication subsector and public administration and defense; compulsory social security subsector, which
recorded growth of 6.1% and 15.4%, respectively, for the first nine months of 2018, compared to growth of 3.7% and 7.5%, respectively, over the same
period in 2017.
Net Primary Income
According to preliminary data, in the first nine months of 2018, net primary income grew by 4.9%, compared to growth of 6.7% in the first nine
months of 2017. This decrease was mainly due to a decrease in inflows from compensation, from a growth of 6.0% in the first nine months of 2017 to
growth of 4.8% in the first nine months of 2018. The lower growth in net primary income was also attributable to a decrease in inflows from property
income, from growth of 30.3% in the first nine months of 2017 to growth of 24.5% in the first nine months of 2018. These decreases were partially offset
by an increase in outflows from property expense, from a growth of 6.8% in the first nine months of 2017 to growth of 10.6% in the first nine months of
2018.
Prices, Employment and Wages
Inflation
The average inflation rate for 2018 was 5.2%, higher than the 2.9% average inflation rate for 2017. The higher rate of inflation in 2018 was mainly
due to higher growth in the price indices of all commodity groups except for education.
In the first eight months of 2018, the producer price index recorded average inflation of 0.3%, a reversal from the deflation of 1.2% recorded in the
first eight months of 2017. The price indices for tobacco, beverages and machinery excluding electrical increased by 51.6%, 15.0% and 6.8%, respectively,
in the first eight months

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of 2018, compared to increases of 1.1%, contraction of 1.0% and 3.8%, respectively, in the first eight months of 2017. The reversal in the producer price
index from deflation in the first eight months of 2017 to inflation in the first eight months of 2018 was also attributable to decreases of 39.8% and 21.4%,
respectively, in price indices in fabricated metals and furniture and fixtures in the first eight months of 2017, compared to decreases of 12.5% and 3.1%,
respectively, in the first eight months of 2018. The price indices of textiles, paper and paper products, publishing and printing, petroleum products, glass
and glass products, basic metals, iron and steel, non-ferrous metals, miscellaneous non-metallic mineral products, electrical machinery and miscellaneous
manufactures also recorded increases in the first eight months of 2018.
In October 2018, the total number of employed persons in the Republic, excluding overseas foreign workers ("OFWs"), was estimated at 41.3 million
people. The average unemployment rate remained relatively stable at 5.1% in October 2018, compared to 5.0% in October 2017. The average labor force
participation rate in October 2018 was 60.6%, a decrease from the rate of 62.1% recorded in October 2017. Workers in the Republic remained employed
primarily in the service sector. Workers in the service sector comprised 56.8% of the total of persons employed in the Republic in October 2018. The
largest subsectors in terms of employment included the wholesale and retail trade; repair of motor vehicles and motorcycles subsector, which employed
19.3% of the total employed, and transportation and storage subsector, which employed 7.7% of the total employed. The agriculture, hunting and forestry
and fishery sector comprised 24.1% of the total employed, and the industry sector comprised 19.1% of the total employed in October 2018.
Balance of Payments
Overall Balance of Payments Performance
In the first nine months of 2018, preliminary data indicate that the overall balance of payments position of the Republic recorded a deficit of $5.1
billion, which was an increase from the $1.4 billion deficit recorded in the first nine months of 2017. The increase in the deficit was primarily the result of
an increase in net outflows in the current account. The current account recorded a deficit of $6.5 billion in the first nine months of 2018, compared to a
surplus of $1.0 billion in the first nine months of 2017. The financial account recorded a net outflow of $4.0 billion in the first nine months of 2018,
compared to a net inflow of $0.6 billion in the first nine months of 2017. The decrease in net inflow in the financial account was primarily due to an
increase in net outflow in other investment, from net inflow of $1.3 billion in the first nine months of 2017 to net outflow of $1.8 billion in the first nine
months of 2018. Direct investment recorded a net outflow of $5.0 billion in the first nine months of 2018, as compared to a net outflow of $4.1 billion
recorded for the first nine months of 2017.
Current Account
Preliminary data indicate that in the first nine months of 2018, the current account recorded a deficit of $6.5 billion, compared to a surplus of $1.0
billion recorded in the first nine months of 2017. The reversal to a deficit in the current account was primarily the result of increased deficit in trade-in-
goods, from $27.7 billion in the first nine months of 2017 to $36.9 billion recorded in the first nine months of 2018. The increase in the trade-in-goods
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deficit was partially offset by an increase in the surplus in trade-in-services account from a surplus of $7.1 billion in the first nine months of 2017 to a
surplus of $8.4 billion in the first nine months of 2018.
Goods Trade
According to preliminary data, the trade-in-goods deficit in the first nine months of 2018 increased by 33.2% to $36.9 billion, compared to the $27.7
billion recorded in the same period in 2017. The increase in trade-in-goods deficit was primarily the result of an increase in imports, which increased by
13.2% in the first nine months of 2018 to $75.7 billion, compared to $66.9 billion in imports recorded in the first nine months of 2017. In addition, exports
of goods decreased by 0.9% to $38.8 billion in the first nine months of 2018, from the $39.2 billion recorded in the first nine months of 2017. The increase
in imports of goods was due mainly to a 13.2% increase in imports of general merchandise to $75.7 billion in the first nine months of 2018, from the $66.9
billion recorded in the first nine months of 2017.

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Exports of Goods
In the first nine months of 2018, according to preliminary PSA data, total exports of goods decreased by 1.7% to $51.0 billion, compared to the
$51.8 billion recorded in the first nine months of 2017. This decrease was driven primarily by the decrease in exports of manufactured goods, which
comprised 83.6% of total exports, decreased by 1.5% from $43.3 billion in the first nine months of 2017 to $42.6 billion in the first nine months of 2018.
The decrease in exports of manufactured goods was largely driven by a 75.1% decrease in wood manufactures exports, which decreased from $1.1 billion
in the first nine months of 2017 to $0.3 billion in the first nine months of 2018. The decrease in exports of goods was also due to a 29.8% decrease in
coconut products, from $1.6 billion in the first nine months of 2017 to $1.1 billion in the first nine months of 2018. The decrease in exports of goods was
partially offset by a 5.8% increase in electronic products exports, which increased from $26.9 billion in the first nine months of 2017 to $28.5 billion in the
first nine months of 2018.
Imports of Goods
In the first nine months of 2018, according to preliminary PSA data, total imports of goods increased 16.3% to $80.7 billion, from the $69.4 billion
recorded in the first nine months of 2017. This increase was primarily due to higher imports of semi-processed raw materials, which increased by 20.1% to
$28.5 billion in the first nine months of 2018 from $23.8 billion in the first nine months of 2017. Imports of manufactured goods increased by 26.1% to
$11.1 billion in the first nine months of 2018 from $8.8 billion in the first nine months of 2017. These increases were partially offset by lower imports of
unprocessed raw materials, which decreased by 13.2% to $2.9 billion in the first nine months of 2018 from $3.3 billion in the first nine months of 2017.
Services Trade
In the first nine months of 2018, according to preliminary data, the trade-in-services account recorded an surplus of $8.4 billion, an 18.2% increase
from the $7.1 billion surplus recorded in the first nine months of 2017. The higher surplus was mainly attributable to an increase in the surplus in other
business services of 6.8% to $9.3 billion in the first nine months of 2018 from $8.7 billion in the first nine months of 2017. The higher surplus was also
attributable to a decrease in the deficit in travel to a deficit of $3.6 billion in the first nine months of 2018 from a deficit of $3.9 billion in the first nine
months of 2017, and an increase in the surplus in telecommunications, computer and information services to a surplus of $3.9 billion in the first nine
months of 2018 from a surplus of $3.7 billion in the first nine months of 2017. These results were partially offset by an increase in the deficit in
government goods and services by 81.9% to $375.7 million in the first nine months of 2018 from $206.6 million in the first nine months of 2017.
Primary Income
In the first nine months of 2018, according to preliminary data, the primary income account recorded a surplus of $2.5 billion, a 12.8% increase from
the $2.2 billion surplus recorded in the first nine months of 2017. The increased primary income account surplus was primarily the result of an increase in
the surplus of compensation of employees to $6.0 billion in the first nine months of 2018 from $5.8 billion in the first nine months of 2017. The increased
in the surplus was also attributable to a decrease in the deficit in portfolio investment to $1.7 billion in the first nine months of 2018 from $1.9 billion in
the first nine months of 2017, and a reversal in other investment from a deficit of $121.3 million in the first nine months of 2017 to a surplus of $64.7
million in the first nine months of 2018. These factors were partially offset by a 21.9% increase in the deficit in direct investment to $2.7 billion in the first
nine months of 2018 from $2.2 billion in the first nine months of 2017.
Secondary Income
According to preliminary data, the secondary income account recorded a surplus of $19.4 billion in the first nine months of 2018, 0.9% higher than
the $19.3 billion surplus recorded in the first nine months of 2017. The

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increased surplus was due mainly to a 2.0% increase in the personal transfers account to $18.7 billion in the first nine months of 2018 from $18.4 billion in
the first nine months of 2017. The larger surplus in the personal transfer account was partially offset by an 81.4% decrease in the surplus in the general
government account to $67 million in the first nine months of 2018 from $360 million in the first nine months of 2017.
Capital Account
According to preliminary data, the capital account recorded net payments of $5 million in the first nine months of 2018, a reversal from the net
receipts of $42 million recorded in the first nine months of 2017. The reversal from net payments to net receipts was attributable to a decrease in net credit
in capital transfers to $5 million in the first nine months of 2018 from $41 million in the first nine months of 2017, driven largely by transfers to the
national government.
Financial Account
According to preliminary data, the financial account recorded net outflows of $4.0 billion in the first nine months of 2018, a reversal from net inflows
of $615 million recorded in the first nine months of 2017. This reversal was mainly attributable to a reversal in other investment from net inflows of $1.3
billion in the first nine months of 2017 to net outflows of $1.8 billion in the first nine months of 2018. The reversal from net inflows to net outflows in the
financial account was also attributable to an increase in net outflow in direct investment to $5.0 billion in the first nine months of 2018 compared to $4.1
billion in the first nine months of 2017.
Direct Investments
According to preliminary data, the direct investment account recorded net inflows of $5.0 billion in the first nine months of 2018, a 23.2% increase
from net inflows of $4.1 billion recorded in the first nine months of 2017. The increase was mainly attributable to an increase in net incurrence of liabilities
of 24.2% to $8.0 billion in the first nine months of 2018 from $6.5 billion in the first nine months of 2017. This increase was partially offset by an increase
of 26.0% in net acquisition of financial assets to $3.0 billion in the first nine months of 2018 from $2.4 billion in the first nine months of 2017.
Portfolio Investments
According to preliminary data, the portfolio investment account recorded net outflows of $2.8 billion in the first nine months of 2018, an 18.7%
decrease from the $3.5 billion of net outflows recorded in the first nine months of 2017. The decrease in net outflows of the portfolio investment account
was attributable to a reversal in net incurrence of liabilities from net inflows of $1.9 billion in the first nine months of 2017 to net outflows of $686.3
million in the first nine months of 2018. This factor was partially offset by an increase in net acquisition of financial assets to $3.5 billion in the first nine
months of 2018 compared to $1.5 billion in the first nine months of 2017.
Other Investments
According to preliminary data, the other investment account recorded net inflows of $1.8 billion in the first nine months of 2018, a reversal from the
$1.3 billion of net outflows recorded in the first nine months of 2017, primarily attributable to an increase in net inflows in currency and deposits to $1.9
billion in the first nine months of 2018 from $749.9 million in the first nine months of 2017 and a 61.0% decrease in net outflows in loans to $1.3 billion in
the first nine months of 2018 from $3.4 billion in the first nine months of 2017.
Foreign Direct Investment
In the first nine months in 2018, net inflows of foreign direct investment ("FDI") were $8.0 billion, 24.2% higher than the $6.5 billion recorded in the
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net debt instruments, which increased from $4.6 billion in the first nine months in 2017 to $5.5 billion for the same period in 2018. The increase in net
inflows of FDI was also attributable to increase in net investments in manufacturing activities from $613.9 million in the first nine months in 2017 to
$993.6 million for the same period in 2018, and increase in net investments in financial and insurance activities from $127.8 million in the first nine
months in 2017 to $213.6 million for the same period in 2018.
The contribution of equity investments to net inflows of FDI increased by 52.1% in the first nine months in 2018, from $1,248.6 million in the first
nine months in 2017 to $1,899.6 million in the first nine months in 2018. FDI increased primarily as a result of an increase in net inflows from ASEAN,
which increased from $351.7 million in the first nine months of 2017 to $909.5 million in the first nine months of 2018 and an increase in net inflows from
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