Philippines Trade Deficit Widens in August


Philippines reported a trade deficit of USD953.89 million in August of 2015, significantly up from a USD373.28 million gap a year earlier but better than market consensus, as exports fell while imports rose.

In August, exports declined by 6.3 percent year-on-year to USD5.13 billion. Sales of other mineral products fell the most by 63.2 percent, followed by articles of apparel and clothing accesssories (-39.3 percent);  ignition wiring set and other wiring sets used in vehicles, aircrafts and ships (-37.4 percent), chemicals (-27.8 percent), metal components (-10.6 percent)  and other manufactures (-7.9 percent). In contrast, exports increased for: electronic equipment and parts (+185.7 percent), machinery and transport equipment (+41.1 percent) and woodcrafts and furniture (+9.3 percent). Electronic products, the country's top exports and accounted for 45.9 percent of total share, also rose by 3.3 percent. Among electronic products, components/devices grew by 8.6 percent year-on-year.
 
Outbond shipments to the country's main trading partners mostly declined. Those to the US, representing a 15.0 percent of total exports, dropped  by 4.0 percent to USD766.38 million, followed by China (-23.5 percent to USD627.31 million, 12.2 percent share), the ASEAN countries (-3.0 percent to USD749.24 million with exports to Singapore falling by 12.7 percent to USD353.48 million) and the EU countries (-10.7 percent to USD618.71 million. Sales to Japan, the country's top destination of exports, also declined by 1.6 percent to USD1.03 billion.  In contrast, those to Hong Kong increased by 8.1 percent to USD515.01 million, 10.0 percent share).
 
Imports increased by 4.1 percent to USD6.08 billion, sharply slowing from a 16.9 percent rise in August. Purchases rose the most for medicinal and pharmaceutical products (+98.8 percent), followed by electronic products (+68.5 percent), miscellaneous manufactured articles (+17.4 percent), industrial machinery and equipment (+16.0 percent) and other food and live animals (+10.3 percent). In contrast, inbound shipments declined for: mineral fuels, lubricants and related materials (-49.7 percent), plastics in primary and non-primary forms (-22.4 percent), transport equipment (-17.8 percent), iron and steel (-9.8 percent) and cereals and cereal preparations (-8.8 percent).
 
Inbound shipments from China, the biggest source of imports for Philippines, increased by 24.9 percent year-on-year to USD1.09 billion. Imports from the US, the second largest source of purchases, also rose by 75.0 percent to USD792.01 million, followed by Japan (+6.9 percent to USD434.18 million) and the ASEAN countries (+8.7 percent to USD1.49 billion) and Taiwan (+27.6 percent to USD528.72 million. In contrast, imports from the EU countries declined by 32.9 percent to USD499.43 million).
 
In July 2015, the country registered a USD1,170 million trade deficit.
 
From January to August 2015, the Southeast Asian nation recorded a USD4.30 billion trade deficit, widening from a USD1.90 billion in the same period of last year.
 

Philippines Trade Deficit Widens in August


PSA l Rida Husna | rida@tradingeconomics.com
10/27/2015 2:47:26 AM