Philippines Trade Gap Hits Record High in October

The Philippine's trade deficit widened sharply to USD 4.21 billion in October of 2018 from USD 2.59 billion in the same month a year earlier. It was the largest trade gap on record, as import rose much more than exports.
PSA l Rida | 12/11/2018 3:39:00 AM
Year-on-year, imports jumped 21.4 percent to USD 10.32 billion in October, after a 26.1 percent rise in September. Purchases grew for all commodities: cereal and cereal preparations (52.3 percent); mineral fuels and lubricants (45.4 percent); other food and live animals (33.6 percent); telecommunication equipment and electrical machinery (26.7 percent); miscellaneous manufactured articles (25.4 percent); plastic in primary and non-primary form (24.9 percent);  industrial machinery and equipment (21.5 percent); transport equipment (18.4 percent); electronic products (14.8 percent); and iron and steel (7.8 percent).

Inbound shipments from China, the Philippine’s biggest source of purchases, soared 28.2 percent. Also, imports went up from South Korea (57.1 percent), the US (3.9 percent); the ASEAN countries (7.9 percent) and the EU countries (61.7 percent). In contrast, imports fell from Japan (-4 percent) and Thailand (-1.3 percent).

Meanwhile, exports rose 3.3 percent to USD 6.11 billion, following an upwardly revised 0.8 percent gain in the previous month. Sales went up for: machinery and transport equipment (94.1 percent); bananas (30.9 percent); other manufactured goods (24.3 percent); miscellaneous manufactured articles (23.8 percent) and metal components (17.6 percent). Also, sales of electronic products, the country’s top exports, increased by 0.6 percent. In contrast, exports fell for: electronics equipment and parts (-11.8 percent); chemicals (-5.8 percent); and ignition wiring set and other wiring sets used in vehicles, aircrafts and ships (-4.1 percent).

Outbound shipments advanced  to the US (18 percent); China (4.4 percent); Thailand (14.3 percent); and the ASEAN countries (9.2 percent). In contrast, outbound shipments declined to Hong Kong (-7.3 percent), Japan (-7.5 percent), and Singapore (-3.1 percent). 

Considering the first ten months 2018, the trade deficit increased sharply to USD 33.92 billion from USD 20.13 billion in the same period a year earlier.

Philippines Trade Gap Hits Record High in October