Philippines Trade Deficit Largest Since April 2014


Philippines reported a trade deficit of USD 751.5 million in January of 2015, down from a USD 1.57 billion gap a year earlier as imports fell more than exports.

In January, exports decreased by 0.5 percent year-on-year to USD 4.36 billion. Sales of other manufactures, the second top exports revenue in the month, dropped the most by 45.5 percent, following a 52.8 percent decline in December. Outbond shipments also dropped for woodcrafts and furniture (-43.4 percent), chemical (-21.8 percent), metal components (-21.6 percent)  and coconut oil(-3.3 percent). In contrast, sales increased for: ignition wiring set and other wiring sets used in vehicles, aircrafts and ships (+62.7 percent), machinery & transport equipment (+39.6 percent), articles of apparel and clothing accessories (+10.0 percent) and other mineral products (+8.7 percent). Exports of electronic products, the country's top export and accounting for 46.8 percent, also rose by 14.6 percent, accelerating from a 9.9 percent increase in December. Among the major groups of electronic products, Components/Devices (Semiconductors), increased by 16.0 percent and accounted for 32.2 percent among electronic products.
 
Sales to Japan, the country's top destination, fell by 23.2 percent to USD 882.61 million. Exports to the ASEAN countries, accounting for a 16.0 percent share, also dropped by 6.9 percent to USD 696.25 million. Those to Singapore, representing a 7.0 percent of the total earnings, declined by 21.0 percent to USD 304.89 million. In contrast, outbond shipments to China, the U.S. and Hong Kong increased. Those to the U.S., accounting for 15.9 percent share, rose the most by 15.1 percent to USD 693.87 million. Exports to China increased by 2.8 percent to USD 445.35 million, accounting for a 10.2 percent share and those to Hong Kong rose by 30.5 percent to USD 427.38 million, representing a 9.8 percent share.
 
Imports declined by 14.2 percent to USD 5.11 billion. Purchases fell for most categories except electronic products and cereals and cereal preparations. Purchases of transport equipment dropped the most by 58.1 percent), followed by mineral fuels, lubricants and related materials (-43.4 percent); iron and steel (-15.0 percent), organic and inorganic chemicals (-13.5 percent); plastics in primary and non-primary forms (-10.6 percent); indystrial machinery and equipment (-4.1 percent); other food and live animals (-3.5 percent) and miscellaneous manufactured articles (-1.8 percent). In contrast, imports of electronic products grew by 28.3 percent and those of cereals and cereal preparation rose by 5.3 percent.
 
Purchases from China, the U.S., the ASEAN countries and the EU countries declined year-on-year while those from  Singapore, Japan,  Taiwan and South Korea increased. Inbound shipments from China, the biggest source of imports, fell by 8.3 percent to USD 788.1 million, followed by the ASEAN countries (-7.8 percent to USD 1.29 billion, comprising of 23.4 percent share), the U.S. (-31.3 percent to USD 460.46 million, contributing a 9.0 percent share) and the EU countries (-7.9 percent to USD 698.37 million). In contrast, imports from Singapore rose by 39.4 percent to USD 463.41 million, followed by Japan (+7.4 percent to USD 392.39 million), Taiwan (USD 369.48 million) and South Korea (USD 331.11 million).
 
In December 2014, the country registered a revised USD 66.90 million trade deficit.

Philippines Trade Deficit Largest Since April 2014


National Statistics Office l Rida Husna l rida@tradingeconomics.com
3/25/2015 11:36:21 AM