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The Philippines’ trade deficit decreased 13.5% in October 2022 as external trade grew 12.3% year-on-year
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Trade grew for the 21st consecutive month in October
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Imports improved 7.5% while exports increased 20%
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China remained the country’s top imports source while Hong Kong was the top export destination
The Philippine trade deficit narrowed in October, falling 13.5% year-on-year as external trade grew 12.3%, according to the Philippine Statistics Authority.
External trade in October reached US$18.70 billion, higher than the $16.65 billion recorded in October 2021, as it expanded for its 21st consecutive month.
The balance of trade was negative $3.31 billion, indicating October’s trade deficit narrowed 13.5% y-o-y, a reversal from September’s 27.1% increase and October 2021’s 86.6% increase.
Of the total external trade in October this year, 58.8% comprised imported goods while the rest were exported goods.
Imports rose 7.5% to $11 billion in October from the $10.235 billion recorded in the same month last year. This was also the 21st straight month of growth in imports that was mainly due to increases in the values of five of the top 10 major commodity groups.
Metalliferous ores and metal scrap had the fastest annual growth rate of 462.7%, followed by transport equipment, which rose 46.3%, and other food and live animals, which increased 40.3%.
From January to October 2022, imports amounted to $115.99 billion, 22.7% more than the $94.50 billion in the same period last year.
Exports likewise grew 20% to $7.70 billion in October from $6.412 billion in the same month in 2021. The growth in October 2022 was the second consecutive month of increase for exports after two consecutive months of decline, and faster than the 7.1% increase posted in September 2022.
Of the top 10 major commodity groups, the export value of three recorded annual increases, and these were electronic products (39.6%); ignition wiring set and other wiring sets used in vehicles, aircrafts and ships (26.1%); and machinery and transport equipment (1.9%).
From January to October 2022, exports rose 6.3% to $66.01 billion from $62.10 billion in the same period last year.
By commodity group, electronic products remained the country’s top import and export items.
For imports, electronic products made up 26.2% or $2.88 billion of the total import bill while exports accounted for 66.3% or $5.10 billion.
By major types of goods, imports of raw materials and intermediate goods again accounted for the largest share of the import bill at 38.7% or $4.26 billion in October 2022. For exports, manufactured goods still had the biggest share at 85.4% or $6.57 billion.
Imports of personal protective equipment (PPE) and medical supplies, including COVID-19 vaccines declined 82.1% to $33.80 million in October 2022 from $188.74 million in the same month last year. Total imports of COVID-19 vaccines were valued at $13.51 million.
Exports of PPEs and medical supplies likewise fell 49.5% to around $680,000 from $1.35 million.
China remains the country’s biggest supplier of imported goods, which were valued at $2.22 billion or 20.2% of the total imports in October 2022. Indonesia followed with $1.27 billion; Japan, $1.01 billion; South Korea, $920.05 million; and the US, $767.87 million.
For exports, Hong Kong absorbed the largest part valued at $1.28 billion, or a 16.6% share in the Philippines’ total exports in October.
Hong Kong was followed by the US, which took up $1.18 billion; Japan, $999.67 million; China, $959.59 million; and Singapore, $438.03 million.
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