Philippines Trade Deficit Widens in July

Philippines reported a trade deficit of USD 2.05 billion in July of 2016, compared to a USD 1.52 billion gap a year earlier as exports fell much more than imports.
PSA l Rida Husna | 9/9/2016 11:54:17 AM
Year-on-year, sales declined by 13.0 percent to USD 4.67 billion, following a 11.4 percent fall in June. It was the 16th straight month of decline and the largest drop since March as sales were lower for most categories: machinery and transport equipment (-36.8 percent), woodcraft (-24.2 percent), other mineral products (-18.9 percent) and chemicals (-18.7 percent). Exports of electronic products, the country's top export revenues, also decreased by 14.8 percent. In contrast, outbound shipments rose for: coconut oil (+42.6 percent) and other manufactures (+7.7 percent). 

Sales fell to all of the country's main trading partners: Japan (-14.4 percent), the US (-4.2 percent), China (-6.5 percent), Hong Kong (-9.9 percent), ASEAN countries (-25.9 percent) and the EU countries (-6.1 percent).

Imports declined by 1.7 percent to USD 6.73 billion, following a 15.4 percent growth in the preceding month. It was he first drop since December. Purchases were lower for: mineral fuels, lubricants and related materials (-26.3 percent), electronic products (-8.1 percent) and iron and steel (-5.7 percent). In contrast, inbound shipments rose for: power generating and specialised machinery (+28.7 percent), plastics in primary and non-primary forms (+25.5 percent), miscellaneous manufactured articles (+22.0 percent), transport equipment (+15.4 percent), other food and live animals (+12.1 percent), industrial machinery and equipment (+10.1 percent) and telecommunication equipment and electrical machinery (+7.5 percent).

Purchases fell from the US (-24.5 percent to USD 571.46 million), followed by the ASEAN countries (+1.7 percent to USD 1.64 billion) and South Korea. In contrast, imports from China, the biggest source of purchases for Philippines, rose  11.2 percent to USD 1.28 billion. Those from Japan also increased by 24.8 percent to USD 824.97 million), followed by Thailand (+16.1 percent to USD 514.38 million) and the EU countries (-21.1 percent to USD 494.91 million).

In June 2016, trade deficit stood at USD 2.10 billion.

Philippines Trade Deficit Widens in July