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The Philippines’ external trade shrank 9.9% in December 2022, its first contraction since February 2021, as both imports and exports declined, preliminary data from the Philippine Statistics Authority show
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Imports fell for the second straight month in December 2022, dropping 9.9%, while exports declined 9.7% after three consecutive months of improvement
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As a result, the country recorded a trade deficit of US$4.6 billion in December
The country’s external trade shrank 9.9% year-on-year to US$15.93 billion in December 2022, the first decline recorded since February 2021 as both imports and exports dropped, according to preliminary data from the Philippine Statistics Authority.
Imports sank for the second straight month in December 2022 to $10.26 billion from $11.395 billion in December 2021, a 9.9% decline.
After three consecutive months of improvement, exports recorded a 9.7% drop in December 2022 to $5.67 billion from $6.279 billion year-on-year.
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As a result, the country recorded a trade deficit of $4.60 billion in December.
From January to December 2022, though, imports still grew 17.3% to $137.16 billion from $116.88 billion year-on-year.
For the full year 2022, exports rose 5.6% to $78.84 billion from $74.65 billion in 2021.
The decrease in imports in December was mainly due to decreases in values of seven of the top 10 major commodity groups, with iron and steel having the fastest annual decline of -41.7%. This was followed by miscellaneous manufactured articles, which dropped by -15.3% annually; and transport equipment by -10.9%.
Of the top 10 major export commodity groups, six recorded annual decreases in terms of the value of exports. These were coconut oil (-39.5%); chemicals (-24.7%); electronic products (-13.9%); other manufactured goods (-9.8%) such as spectacle lenses of other materials and other cigarettes containing tobacco; metal components (-3%); and electronic equipment and parts (-2.7%).
By commodity group, electronic products continued to be the country’s top import and export. For exports, the commodity took up $3.17 billion or 55.9% of total exports, for imports, $2.42 billion or 23.6% of the total.
By major type of goods, imports of raw materials and intermediate goods still accounted for the largest share with $3.71 billion or 36.1% in December 2022. For exports, manufactured goods accounted for 80.7% or $4.57 billion.
By major trading partners, China remained the country’s biggest supplier of imported goods valued at $2.33 billion or 22.7% of the total in December 2022. Completing the top five major import trading partners were Indonesia, $1.07 billion; Japan, $809.85 million; US, $699.75 million; and South Korea, $697.85 million.
China was also the top destination for exports in December 2022, accounting for $980.84 million or 17.3% of the total. It was followed by the US with $811.50 million, Japan, $793.58 million; Hong Kong, $569.93 million; and Singapore, $346.41 million.
