PHL trade deficit in Oct. widest in six months – statistics office

The Philippine balance of trade registered a $2.163 billion deficit in October, the widest in six months since the gap expanded to $2.306 billion in April, as imports continued to outpace exports, data released by the Philippine Statistics Authority (PSA) on Friday showed.

The deficit was broader compared with $1.890 billion last September and with $1.944 billion in October 2015.

Imports totaled $6.921 billion, up 5.9 percent from $6.534 billion a year earlier, while exports registered was 3.7 percent higher at $4.758 billion from $4.590 billion.

Total trade grew by 5 percent at P11.679 billion in October from $11.124 billion a year earlier.

“Total trade was boosted by higher exports and imports to and from Asia and other major markets. For the year’s first ten months, it is good to note that total trade remains steady at 4.7 percent,” National Economic and Development Authority (NEDA) Director-General Secretary Ernesto Pernia said in a separate statement.

The growth in import payments was attributed to higher demand for capital goods at 13.1 percent, consumer goods at 16.6 percent and mineral fuels and lubricants at 22.3 percent.

Exports grew for the second, after 17 months of declines, on account of higher receipts from mineral products at 15.1 percent and agro-based products at 30.6 percent.

"The exports growth in October was basically because the improvement in the global market," Philippine Exporters Confederation Inc. (PhilExport) President Sergio R. Ortiz-Luis Jr. said.

Pernia noted that China lifted the ban on Philippine mangoes and bananas, signaling the potential for more China-bound exports of high value crops like coconut and dragon fruit, as well as fishery product such as grouper, crabs, shrimps, prawns and tuna.

“The country’s improving relationship with Russia will also spur growth in the exports sector, as Russia committed to import around $2.5 billion worth of Philippine fruits, grains, and vegetables in the next twelve months,” the Cabinet official said.

Pernia said he is hopeful about the global economy, given the positive jobs data recently released by the US.

“We must also maximize our bilateral ties with Japan and the European Free Trade Association, including Europe’s Generalized Scheme of Preferences. Filipino exporters should also remain proactive in driving up product differentiation, innovation, and diversification, especially since there will soon be stronger integration in the ASEAN region,” he added. — VS, GMA News