Philippines Post Small Trade Deficit in December


Philippines reported a trade deficit of USD 68.22 million in December of 2014, narrowing from a USD 485.33 million gap a year earlier as imports fell the most since April 2012 while exports declined at a slower pace.

In December, exports decreased by 3.2 percent year-on-year to USD 4.80 billion. Sales of other manufactures, the second top exports revenue in the month, dropped the most by 52.8 percent, following a 27.2 percent decline in November. Outbond shipments also dropped for electronic equipment and parts (-41.7 percent) followed by woodcrafts and furniture (-16.5 percent, 4.2 percent share) and other mineral products (-7.7 percent).

In contrast, sales increased for: articles of apparel and clothing accessories (+33.8 percent); machinery & transport equipment (+32.5 percent, 6.6 percent share); chemicals (+7.9 percent, 3.6 percent share); metal components (+6.6 percent) and ignition wiring set and other wiring sets used in vehicles, aircrafts and ships (+2.7 percent). Exports of electronic products, the country's top export and accounting for 49.5 percent, also rose by 9.9 percent, slowing from a 21.8 percent increase in November. Among the major groups of electronic products, Components/Devices (Semiconductors), increased by 12.9 percent and accounted for the biggest share of 35.7 percent among electronic products.
 
Sales to some major trading partners decreased except those to the ASEAN countries, the US, the EU countries and Hong Kong. Exports to Japan, the country's top destination, fell by 3.2 percent to USD 1.05 billion(comprising of 21.2 percent of the total), followed by China (-27.5 percent to USD 545.6 million, 11.4 percent share) and Singapore (-0.1 percent to USD 372.12 million, 7.8 percent share). Exports to the ASEAN countries rose by 10.0 percent to SD 732.4 million,15.3 percent share, followed by the US (+14.3 percent to USD 590.9 million, 14.1 percent share), the EU countries  (+2.4 percent to USD 487.2 million, 15.3 percent share) and Hong Kong (+12.8 percent to USD 433.9 million, 10.2 percent share).
 
Imports declined by 10.6 percent to USD 4.87 billion. Purchases fell for: transport equipment (-51.2 percent); mineral fuels, lubricants and related materials (-36.8 percent);  cereals and cereal preparations (-31.6 percent), miscellaneous manufactured articles (-10.3 percent) and industrial machinery and equipment (-9.7 percent).

In contrast, purchases increased for: other food and live animals (+18.1 percent), cereals and cereal preparations (+59.9 percent), feeding stuff for animals (not including unmilled cereals) (+9.6 percent), plastics in primary and non-primary forms (+9.4 percent) and organic and inorganic chemicals (+7.5 percent). Imports of electronic products rose by 32.2 percent and accounted for 34.8 percent  share. Among the major group of electronic products, Components/Devices (semiconductors) rose by 49.10 percent year-on-year and accounted for the biggest share of 30.1 percent among electronic products.
 
Purchases from the country's main trading partners declined except those from China, Singapore and the EU countries. Imports from the ASEAN countries fell the most by 5.7 percent to USD 1.15 billion (comprising of 23.7 percent of total imports), followed by the US (-19.3 percent to USD 479.4 million, 9.8 percent share) and Japan (-5.5 percent to USD 406.3 million, 7.9 percent share). Purchases from China, the Philippines' biggest source of purchases, rose by 15.0 percent to USD 668.4 million and those from Singapore increased by 21.3 percent to USD 404.03 million, representing a 8.3 percent share. Puchases from the EU countries increased by 12.1 percent to USD 685.5 million.
 
In November 2014, the country registered a revised USD 233 million trade deficit.
 
For full year of 2014, exports increased 9.0 percent over a year earlier to USD 61.81 billion and imports rose 2.4 percent to USD 63.92 billion. That brought a USD 2.11 billion trade deficit, as compared to a USD 5.72 billion shortage in the preceding year.
 

Philippines Post Small Trade Deficit in December


National Statistics Office l Rida Husna l rida@tradingeconomics.com
2/24/2015 6:00:49 AM