Philippine trade deficit widens 75.4% to $5.84 billion

The Philippine trade deficit widened by double digits in June as imports continued to outpace exports during the month, preliminary data released by the Philippine Statistics Authority on Tuesday showed.

The balance of trade in goods (BoT-G) — the difference between the value of exports and imports — posted a $5.843-billion deficit in June, equivalent to an annual increase of 75.4%.

This compares with the downward-revised $5.555-billion deficit in May, and the upward-revised $3.330-billion deficit recorded in June 2021.

A trade deficit indicates that the country imported more than it exported during a period, while a surplus indicates that the country exported more than it brought in goods from other countries.

Imports increased by 26.0% to $12.487 billion from $9.906 billion in June 2021. This is slower than the 30.2% growth recorded in May and the 42.4% the same month last year.

The biggest increase was recorded in mineral fuels, lubricants and related materials which climbed 125.1%, followed by iron and steel up 34.3%, and telecommunication equipment and electrical machinery up 23.1%.

Increases were also seen in the import of other food and live animals up 19.3%, transport equipment up 17.0%, electronic products up 9.9%, plastics in primary and non-primary forms up 5.1%, industrial machinery and equipment up 4.9%, and miscellaneous manufactured articles up 4.0%.

Exports for the month amounted to $6.643 billion, up by 1.0% from $6.576 billion in June 2021. This is slower than the 6.4% growth in May, and the 18.9% in June 2021.

The highest jump was seen in the export of other mineral products which grew 75.8%, followed by coconut oil up 63.2%, chemicals up 31.4%, other manufactured goods up 7.0%, and machinery and transport equipment up 3.6%.

Declines were seen in cathodes and sections of cathodes (-50.1%), metal components (-20.7%), ignition wiring set and other wiring sets (-11.0%), electronic products (-5.2%), and electronic equipment and parts (-1.8%).

The latest figures brought the total external trade in goods stood at $19.131 billion, reflecting annual growth of 16.1%. This is higher than the $18.194 billion in May, and $16.482 billion in June 2021. —KG, GMA News