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The Philippines’ trade deficit sank 31.5% year-on-year in August in large part due to the continuing slide in imports.
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External trade dropped 7.2%, the ninth consecutive month of decline, as imports continued to record a double-digit decline (13.1%) while exports grew by only 4.2%
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Electronic products remained the country’s top import and export commodity
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China was still the top import supplier, while the USA was the top export destination
The Philippines’ trade deficit sank 31.5% year-on-year in August in large part due to the continuing slide in imports, according to preliminary data from the Philippine Statistics Authority.
In comparison, the trade deficit in July dropped 30% while it grew by 82.1% in August 2022.
External trade dropped 7.2% to $17.53 billion in August, the ninth consecutive month of decline, as imports continued to record a double-digit decline (13.1%) while exports grew by only 4.2%
The balance of trade was recorded at $-4.13 billion.
Imports, which accounted for 61.8% of the total external trade, fell 13.1% to $10.83 billion from $12.46 billion in August 2022. This is the seventh month in a row of declines for imports.
Of the commodity groups, electronic products, which continued to account for the biggest share of the import bill, recorded the highest decrease in August at $643.72 million. This was followed by iron and steel, which declined by $258.84 million; and mineral fuels, lubricants, and related materials, with an annual drop of $135.13 million.
From January to August, imports dropped 9.6% to $84.12 billion from $93.05 billion in the same period in 2022.
After a slight decline in July, exports rebounded in August, increasing 4.2% to $6.70 billion from $6.43 billion in August 2022.
Electronic products, which remain the country’s top export, had the highest annual increase in August with $221.73 million. This was followed by cathodes and sections of cathodes, refined copper with an annual increase of $127.92 million, and gold with $78.24 million.
From January to August, however, exports still posted a 6.6% drop to $47.81 billion from $51.18 billion in the same period last year.
In August, raw materials and intermediate goods made up the biggest portion of the country’s imports at $3.86 billion, representing 35.6% of the total. On the export side, manufactured goods played the most significant role, contributing $5.48 billion, which was 81.8% of the total export value.
China remained the top source of imported goods for the country, providing goods worth $2.43 billion, accounting for 22.4% of total imports. After China, Indonesia followed with $977.16 million, Japan with $786.65 million, South Korea with $777.13 million, and the USA with $751.74 million.
Regarding exports, the USA led as the primary destination, accounting for 16.4% or $1.10 billion of the total exports in August. Japan, Hong Kong, China, and Singapore followed as the next top export destinations, with values of $917.98 million, $870.91 million, $838.04 million, and $347.28 million, respectively.
