PSA: Trade gap narrowed to $1.776B in October

The Philippine trade gap narrowed in October from both the previous month and the comparable period in 2019, as the drop in imports during the month outpaced that of exports.

Data released by the Philippine Statistics Authority (PSA) on Thursday showed that the balance of trade in goods fell 50.3% to a $1.776-billion deficit in October from the $3.572-billion deficit the same month last year and the $1.782-billion deficit in September.

A deficit indicates that the value of a country’s imports exceeded export receipts, while a surplus indicates more export shipments than imports.

Total trade for the month fell 12.8% to $14.181 billion from $16.256 billion last year, and $14.289 billion in September.

In terms of exports, the Philippines recorded a 2.2% drop to $6.202 billion, reversing the 0.5% growth to $6.341 billion in October last year after annual decreases were recorded in fresh bananas (-42.5%); ignition wiring set and other sets (-9.5%); miscellaneous manufactured articles (-7.0%); machinery and transport equipment (-6.3%); and electronic products (-0.3%).

Growth was still reported in the export of other commodity groups such as cathodes (367.8%); other mineral products (76.6%); metal components (14.9%); chemicals (11.2%); and other manufactured goods (8.6%).

"By major trading partner, exports to the United States of America (USA) comprised the highest export value amounting to $1.01 billion or a share of 16.3% to the total exports during the month," the PSA said.

This was followed by Japan with $965.28 million or 15.6%; China with $944.78 million or 15.2%; Hong Kong with $753.34 million or 12.1%; and Singapore with $398.07 million or 6.4%.

Meanwhile, imports made bigger declines in October falling by 19.5% to $7.979 billion from $9.914 billion last year dragged by lower shipments of transport equipment (-53.6%); mineral fuels, lubricants, and related materials (-49.9%); industrial machinery and equipment (-28.8%); miscellaneous and manufactured articles (-26.9%); and plastics in primary and non-primary forms (-18.1%).

Declines were also reported in the importation of other food and live animals (-15.7%); and iron and steel (-14.1%), while growth was reported in telecommunication equipment (15.2%); cereals and cereal preparations (8.1%); and electronic products (1.1%).

"The People's Republic of China was the country's biggest supplier of imported goods valued at $1.95 billion or 24.4% of the total imports in October 2020," the PSA said. 

China was followed by Japan with $876.46 million or 11%; the United States of America with $639.76 million or 8.0%; South Korea with $580.83 million or 7.3%; and Indonesia with $513.36 million or 6.4%. — RSJ, GMA News