Trade deficit widens 62.9% in October

The Philippine trade deficit widened by 62.9 percent in October this year as imports continued to outpace exports, data released by the Philippine Statistics Authority (PSA) on Tuesday revealed.

According to PSA data, the country's balance of trade in goods recorded a $4.212-billion deficit, bigger than the $2.585-billion deficit the same month last year.

This comes as total exports for the month increased by 3.3 percent to $6.11 billion, while imports rose by 21.4 percent to $10.32 billion.

The biggest increases were registered in the exports of copper concentrates; machinery and transport equipment; fresh bananas; other manufactured goods; miscellaneous articles; metal components; and electronic products.

"With export growth unlikely to pick up pace in the near term and imports to continue to expand, stronger support must be given to key emerging exports sectors in the country," Socioeconomic Planning Secretary Ernesto Pernia said in a separate statement.

Meanwhile, top imports for the month were electronic products; mineral fuels, lubricants, and related materials; transport equipment; industrial machinery and equipment; and iron and steel.

"Imports from our major trading partners continued to trace an upward trend while exports improved modestly," said Pernia.

The latest figures brought the country's total external trade in goods to $16.43 billion in October, reflecting an increase of 14.00 percent from the $14.41 billion the same month last year.

Looking ahead, Pernia cited the importance of reforming the Foreign Investment Act to allow foreign investments in domestic-market oriented firms, besides export-oriented enterprises.

"This will allow foreign firms to transfer their manufacturing facilities to the Philippines to take advantage of the growing domestic market—including the rising middle class—as well as to serve the Asian regional markets. We expect this move to reduce our imports and current account deficit, ease inflation, and create more and better jobs," he said. —KBK/BM, GMA News