Philippines Trade Deficit Widens in February

Philippines reported a trade deficit of USD1.10 billion in February of 2016, larger than a 0.84 billion gap a year earlier as exports fell while imports rose.
PSA l Rida Husna | 4/26/2016 3:36:28 AM
Year-on-year, sales dropped by 4.5 percent to USD4.31 billion, following a 3.9 percent fall in January. It is the 11th consecutive month of decline and the fastest pace since November 2015. outbond shipments fell the most for articles of apparel and clothing accessories (-44.9 percent), followed by chemicals (-38.5 percent), other manufactures (-15.5 percent), metal components (-13.3 percent) and coconut oil (-5.1 percent). In contrast, sales rose for: copper and concentrates (+35.4 percent), woodcrafts and furniture (+29.6 percent), ignition wiring set and other wiring sets used in vehicles, aircrafts and ships (+13.3 percent), and machinery and transport equipment (+10.9 percent). Exports of electronic products, the country's top export revenues, also increased by 8.1 percent.

Sales were down to China (-11.6 percent to USD392.92 million, representing a 9.1 percent share of total exports), Hong Kong (-0.3 percent to USD421.06 million) and the ASEAN countries (-7.8 percent to USD667.25 million, 15.5 percent share). Exports to Japan, the country's top export destination, also declined by 0.3 percent to USD939.61 million. In contrast, outbond shipments rose to the US (+1.6 percent to USD743.04 million, 17.2 percent share), Singapore (+8.0 percent to USD289.01 million, 6.7 percent share) and the EU countries (+5.2 percent to USD550.28 million, 12.8 percent share).

Imports rose 1.2 percent to USD5.41 billion, after surging 30.8 percent in January Purchases increased for most of categories except mineral fuels, lubricants, electronic products and iron and steel. Inbound shipments of telecommunication equipment and electrical machinery rose the most by 77.5 percent, followed by industrial machinery and equipment (+49.7 percent), medicinal and pharmaceutical products (+41.4 percent), transport  equipment (+25.2 percent), miscellaneous manufactured articles (+22.3 percent), other food and live animals (+20.1 percent) and plastics in primary and non-primary forms (+5.5 percent).

Purchases from China, the biggest source of purchases for Philippines, rose  3.5 percent year-on-year to USD905.48 billion. Those from Japan also increased by 65.5 percent to USD684.69 million, followed by Thailand (+39.8 percent to USD483.50 million), South Korea (+17.5 percent to USD377.67 million) and the ASEAN countries (+10.4 percent to USD1.43 billion). In contrast, inbound shipments dropped to the US (-15.7 percent to USD513.35 million) and the EU countries (-29.4 percent to USD433.76 million). 

In January 2016, trade deficit was registered at  USD2.64 billion.

Philippines Trade Deficit Widens in February