PH trade soars on 38.3% imports surge; exports up 7.1%

• Philippine merchandise trade recorded its 11^th consecutive month of improvement, registering a 25.4% increase in December

• Trade deficit in December increased 112.8% to $5.214 billion from a deficit of $2.45 billion year-on-year

• Imports rose 38.3% while exports grew1%

• Electronic products remained the country’s top imported and exported commodity

• The top major types of goods for imports were raw materials and intermediate goods, and those for exports were manufactured goods

Philippine merchandise trade recorded its 11^th consecutive month of improvement in December 2021, registering a 25.4% increase as both imports and exports grew during the period.

Trade in December 2021 amounted to US$17.75 billion, higher than the $14.158 billion posted in December 2020, according to preliminary data from the Philippine Statistics Authority.

Of the total, 64.7% were imported goods, while the rest were exported goods.

Trade deficit in December 2021 increased 112.8% to $5.214 billion from a deficit of $2.45 billion in December 2020.

Imports amounted to $11.48 billion, 38.3% higher than the $8.304 billion recorded in the same period in 2020.

The annual increment of imports was due to the increase in nine of the top 10 major commodity groups, which was led by medicinal and pharmaceutical products with a 615.3% annual increase. This was followed by mineral fuels, lubricants, and related materials, which rose by 146.1%, and cereals and cereal preparations which rose by 47.7%.

For the period January to December 2021, imports grew 31.1% to $117.78 billion from $89.81 billion in 2020.

Exports likewise grew 7.1% to $6.27 billion in December 2021 from $5.854 billion in the same month in 2020.

Of the top 10 major commodity groups in terms of the value of exports, seven recorded annual increases led by coconut oil (135.2%). This was followed by other manufactured goods (53.5%), and chemicals (43%).

From the period January to December 2021, exports rose 14.5% to $74.64 billion.

Among commodity groups, electronic products remained the country’s top import, with a share of $2.71 billion or 23.6% of the total import bill in December 2021. It was likewise the top exported commodity, accounting for $3.67 billion or 58.5% of the total export bill.

By major type of goods, imports of raw materials and intermediate goods still accounted for the largest share to the total imports with $4.72 billion or 41.1% share in December 2021.

Manufactured goods, meanwhile, continued to contributethe biggest share to total exports in December 2021 with$5.27 billion or 84.1% share.

Imports of personal protective equipment (PPE) and medical supplies, including COVID-19 vaccines, surged 2,319.4% to $754.74 million in December 2021. The total import for COVID-19 vaccines was valued at $722.83 million in December 2021.

Exports of PPE and medical supplies, on the other hand, continued to drop 67.9% to $1.07 million in December 2021, the 11^th consecutive month of decline.

By major trading partner, exports to the US comprised the highest export value amounting to $1.01 billion or a share of 16.1%. This was followed by China, $925.15 million; Hong Kong, $861.61 million; Japan, $859.39 million; and Singapore, $441.92 million.

For imports, China remained the country’s biggest supplier with $2.14 billion or 18.7% share to the total. This was followed by South Korea, $1.02 billion; Japan, $971.39 million; Indonesia, $882.08 million; and US, $877.50 million.