Philippine trade gap up 112% in December 2021

The Philippine trade gap widened by more than 100% for the second straight month in December as imports continued to grow at a faster rate than exports, government data showed.

Data from the Philippine Statistics Authority (PSA) showed that the balance of trade in goods (BoT-G) amounted to a deficit of $5.213 billion, up 112.8% from the $2.449-billion deficit a year ago, and wider than the $4.706-billion deficit in November.

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

Total external trade for the month grew 25.4% to $17.754 billion from $14.157 billion in 2020, with imports accounting for 64.7% and exports accounting for 35.3%.

Imports for the month stood at $11.483 billion, up 38.3% from $8.303 billion the previous year.

The top drivers of growth were medicinal and pharmaceutical products which climbed 615.3%; mineral fuels, lubricants, and related materials up 146.15%; cereals and cereal preparations up 47.7%; transport equipment up 33.3%; and iron and steel up 33.1%.

Increases were also seen in miscellaneous manufactured articles, other food and live animals, industrial machinery and equipment, and electronic products.

Telecommunication equipment and electrical machinery was the only major commodity group which saw a decline during the month.

Annual total import value for the year amounted to $117.78 billion, up 31.1% from $89.81 billion recorded in 2020.

Exports for the month were recorded at $6.270 billion or 7.1% higher than the $5.854 billion in December 2020, but lower than the $6.273 billion in November.

Seven of the major commodity groups recorded annual increases, led by coconut oil up by 135.2%, followed by other manufactured goods up 53.5%; chemicals by 43.0%; machinery and transport equipment by 19.2%; and electronic equipment and parts by 16.5%.

Other mineral products jumped 4.9%; and electronic products increased by 1.8%.

Decreases were seen in the exports of ignition wiring sets and other wiring sets used in vehicles, aircrafts, and ships; metal components; and fresh bananas.

Annual total export for the year stood at $74.64 billion, up 14.5% from 2020. — RSJ, GMA News