PH trade deficit narrowed in March 2024 —PSA

Philippine trade deficit narrowed in March as imports contracted at a faster rate than exports, data released by the Philippine Statistics Authority (PSA) on Wednesday showed.

The balance of trade in goods (BoT-G) — the difference between the value of exports and imports — was recorded at -$3.18 billion, indicating a trade deficit that was 36.6% lower than the $5.018-billion deficit a year ago, and the $3.662-billion deficit in February.

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

This comes as exports fell by 7.3% to $6.130 billion from $6.613 billion in March 2023, with the biggest decline posted in mineral products with $195.08 million, followed by other manufactured goods with $66.48 million, and cathodes with $56.05 million.

Electronic products were the country’s top export for the month at $3.59 billion or 58.6% of the total for the month. Other manufactured goods accounted for $294.13 million or 4.8%, and machinery and transport equipment for $204.40 million or 3.3%.

Manufactured goods remained the top contributor to exports in terms of major types of goods with  $4.97 billion, followed by mineral products with $567.35 million, total agro-based products with $463.70 million, and special transactions with $118.74 million.

The United States was the biggest recipient of Philippine shipments for the month with $961.64 million or 15.7%. Hong Kong followed with $880.88 million, China with $837.51 million, Japan with $790.02 million, and South Korea with $391.59 million.

Imports, meanwhile, contracted by 20.0% to $9.310 billion from $11.631 billion the same month in 2023. This is also lower than the $9.569 billion in February.

The steepest declines were seen in electronic products down by $350.61 million, mineral fuels and lubricants by $323.56 million, metalliferous ores by $287.48 million, industrial machinery by $190.38 million, and iron and steel by $184.16 million.

Electronic products were also the highest import for the month at $2.01 billion or 21.6% of the total. Mineral fuels saw $1.46 billion worth of shipments, transport equipment with $946.27 million, cereals with $450.30 million, and industrial machinery with $407.54 million.

Sorted by major types of goods, raw materials were the biggest import with $3.179 billion, followed by capital goods with $2.807 billion, consumer goods with $1.825 billion, and mineral fuels with $1.460 billion.

China was the biggest source of imports with $2.27 billion or 24.4%, backed by Japan with $794.02 million, the United States with $705.85 million, South Korea with $698.79 million, and Indonesia with $665.49 million.

The total external trade in goods amounted to $15.44 billion in March, down by 15.4% from $18.245 billion in March 2023, and lower than the $15.476 billion in February. —KBK, GMA Integrated News