May trade deficit widens

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May trade deficit widens
  • The Philippines’ trade deficit in May widened as exports declined and imports were almost flat from the previous year, according to Philippine Statistics Authority
  • Balance of trade in May totaled -$4.60 billion, 4.5% higher in the same month last year
  • Total export sales declined 3.1% to $6.33 billion in May
  • Manufactured goods contributed an 80.3% share to total exports
  • Total imported goods amounted $10.93 billion with nearly flat growth by 0.03% from the same month last year
  • The transport equipment commodity group posted the biggest decline in imports value

The Philippines’ trade deficit in May widened as exports declined while imports were almost flat from the previous year, according to preliminary data from the Philippine Statistics Authority (PSA).

The balance of trade in May totaled -$4.60 billion, 4.5% higher than the same month last year. The latest trade gap, though, was smaller than the $4.73 billion deficit in April.

Total imported goods amounted $10.93 billion with nearly flat growth by 0.03% from the same month last year.

The transport equipment commodity group posted the biggest decline in imports value, down by $348.54 million in May from a year ago.  This was followed by other food and live animals, which decreased by $62.73 million, and electronic products with an annual decline of $54.87 million.

The year-to-date annual total value of imports amounted to $51.43 billion, an annual decrease of 1.7% from January to May 2023. Annual total import value was $52.29 billion in the same period last year.

The People’s Republic of China was the country’s largest supplier of imported goods, followed by Korea, Indonesia, USA, and Thailand.

Total export sales, on the other hand, declined 3.1% to $6.33 billion from $6.53 billion in the same month last year.

Electronic products posted the biggest drop in exports value with $190.23 million, followed by other mineral products which decreased by $43.66 million, and ignition wiring set and other wiring sets used in vehicles, aircrafts, and ships with an annual decline of $29.54 million, the PSA said.

Meanwhile, manufactured goods contributed to total exports in May amounting to $5.08 billion, an 80.3% share. The rest were mineral products and total agro-based products.

The annual total value of exports amounted to $30.84 billion from January to May. This signifies an annual increase of 7.8% from the same period in 2023. Annual total export value was $28.61 billion in January to May 2023.

The US was the biggest destination for Philippine exports of goods in May, amounting to $1.08 billion or a 17% of the country’s total exports for the month.  Other major export trading partners include Hong Kong, Japan, People’s Republic of China, and Thailand.

READ: April trade deficit expands to highest in five months