Philippines Trade Deficit Widens in July
Philippines reported a trade deficit of USD1.18 billion in July of 2015, markedly up from a USD138.95 million gap a year earlier and missing market forecasts, as exports fell while imports surged.
9/23/2015 6:04:33 AM
In July, exports declined by 1.8 percent year-on-year to USD 5.33 billion. Sales of other mineral products fell the most by 66.6 percent, followed by machinery and transport equipment (-55.2 percent); articles of apparel and clothing accesssories (-37.3 percent); metal components (-29.1 percent); chemicals (-26.0 percent); coconut oil (-14.7 percent); ignition wiring set and other wiring sets used in vehicles, aircrafts and ships (-7.4 percent) and other manufactures (-4.6 percent). In contrast, exports increased for: woodcrafts and furniture (+5.9 percent). Electronic products, the country's top exports and accounted for 52.9 percent of total share, also rose by 34.6 percent. Among electronic products, components/devices grew by 55.0 percent year-on-year.
Outbond shipments to the US, representing a 14.8 percent of total exports, slightly increased by 0.4 percent to USD787.94 million, followed by China (+24.1 percent to USD867.94 million, 16.3 percent share), the ASEAN countries (+7.9 percent to USD810.00 million and the EU countries (+5.3 percent to USD554.81 million. In contrast, sales to Japan, the country's top destination of exports, declined by 14.6 percent to USD1.03 billion. Exports also dropped to Hong Kong (-23.6 percent to USD520.46 million, 9.8 percent share) and Singapore (-14.5 percent to USD300.85 million, 5.6 percent share.
Imports increased by 16.9 percent to USD6.50 billion, following a 22.6 percent rise in July. Purchases rose for all goods except mineral fuels, lubricants and related materials. Imports of power generating and specialised machinery rose by 96.5 percent, followed by miscellaneous manufactured articles (+89.0 percent), other food and live animals (+88.9 percent), electronic products (+71.1 percent), industrial machinery (+57.2 percent), telecommunication equipment (+34.3 percent), iron and steel (+21.7 percent), plastics in primary and non-primary forms (+6.1 percent) and transport equipment (+4.9 percent). In contrast, purchases of mineral fuels declined by 76.4 percent.
Inbound shipments from China, the biggest source of imports for Philippines, increased by 55.9 percent year-on-year to USD1.24 billion. Imports from the US, the second largest source of purchases, also rose by 102.8 percent to USD840.96 million, followed by Japan (+48.1 percent to USD710.28 million) and the ASEAN countries (+20.1 percent to USD1.59 billion). In contrast, imports declined from the EU countries (-6.4 percent to USD569.89 million) and Taiwan (-1.3 percent to USD454.77 million).
In June 2015, the country registered a USD554.79 million trade deficit.
From January to July 2015, the Southeast Asian nation recorded a USD3.01 billion trade deficit, widening from a USD1.50 billion in the same period of last year.