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The Philippines’ external trade in goods grew to US$216.20 billion last year, up 12.9% from $191.58 billion in 2021
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Even so, the country’s trade deficit in 2022 widened further by 38% year on year to $58.24 billion, from $42.19 billion in 2021
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The shortfall was due to the value of imports rising 17.4% y-o-y last year versus the value of exports gaining just 5.7%
Philippine foreign trade grew 12.9% to $216.20 billion in 2022 from the previous year’s $191.58 billion, but a predominance of imports widened further the country’s trade gap by 38%, according to data from the Philippine Statistics Authority (PSA).
Imports, which comprised 63.5% of the total foreign trade, rose 17.4% to $137.22 billion in 2022 from $116.89 billion in 2021. Exports likewise increased, but at a slower pace of 5.7% to $78.98 billion from $74.693 billion.
This brought the trade deficit to US$58.24 billion from $42.19 billion in 2021.
The growth in imports was due to hefty increases in the free-on-board value of all top 10 major commodity groups, with mineral fuels, lubricants and related materials recording the fastest year-on-year rise of 74.6%, according to PSA. This was followed by transport equipment, which grew 32.9% y-o-y, and cereals and cereal preparations, up 26.8%.
As for exports, six of the top 10 major commodity groups recorded year-on-year increases in 2022. These were coconut oil climbing 46.5%, other mineral products, 15%; electronic products, 7.4%; other manufactured goods, 3%; ignition wiring set and other wiring sets used in vehicles, aircraft and ships, 2.2%; and electronic equipment and parts, 1.7%.
By commodity group, electronic products remained the country’s top export in 2022, with total earnings of $45.66 billion accounting for 57.8% of the total. Other mineral products followed with $3.84 billion, or a 4.9% share, and other manufactured goods with $3.83 billion, making up 4.8%.
Electronic products were also the top imported commodity group at $32.75 billion, or 23.9% of the country’s total imports. Mineral fuels, lubricants and related materials followed at $23.80 billion, or 17.3%, and transport equipment at $10.92 billion, or 8%.
By major type of goods, raw materials and intermediate goods had the largest share of the country’s total imports in 2022 at $52.33 billion, or 38.1%. Imports of capital goods came in second at $37.92 billion, or 27.6%, followed by mineral fuels, lubricants and related materials $23.80 billion, or 17.3%.
In terms of exports, manufactured goods topped at $64.04 billion, or an 81.1% share. This was followed by mineral products at $7.27 billion, or 9.2%, and total agro-based products at $5.89 billion, or 7.5%.
By major trading partner, exports to the United States had the highest export value at $12.47 billion, or a share of 15.8%. These were followed by exports to Japan at $11.13 billion, or 14.1%; China at $10.97 billion, or 13.9%; Hong Kong at $10.48 billion, or 13.3%; and Singapore at $4.91 billion, or 6.2%.
China, meanwhile, remained the country’s largest supplier of imported goods valued at $28.22 billion, or 20.6% of the total in 2022. Completing the top five major import trading partners last year were Indonesia at $13.20 billion, or 9.6%; Japan at $12.35 billion, or 9%; South Korea at $12.32 billion or 9%; and US at $8.92 billion, or 6.5%.
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