By Beatriz Marie D. Cruz, A reporter
Trade gap of the PHILIPPINES expanded year-on-year in August as imports continued to outpace exports, with exports at an 11-month high, the government reported on Thursday.
Preliminary data from the Philippine Statistics Authority showed that the country’s trade balance – the difThe agreement between exports and imports – stood at 4.375 billion dollars in August, 6.6% greater than the gap of 4.105 billion dollars in the same month last year.
However, month-on-month, the trade deficit decreased by 10.25% from the $4.88-billion deficit posted in July.
Year to date, trade defThe price fell 4.35% to $34.3 billion from a gap of $35.86-billion last year.
The country’s trade balance is in a def111 straight months (over nine years) or since the $64.95 million surplus recorded in May 2015.
Total foreign trade in goods reached $17.87 billion in August, up 1.8% year-on-year. Of all those goods, 62.2% were imported goods, while the remaining 37.8% were exported goods.
In August, exports rose 0.3% to $6.75 billion from $6.73 billion in the same month in 2023, marking the second consecutive month of increases.
This was the biggest export figure in 11 months or since $6.77 billion in September last year.
Month-on-month, exports increased by 7.97%.
Of fIn the first eight months of the year, exports grew by 2.27% year-on-year to $49.41 billion.
Pantheon Macroeconomics Asia’s Chief Emerging Economist Miguel Chanco said in an email that the decline in exports seen since July “is mainly due to the return of demand in non-traditional markets and, to a lesser extent, the recovery of exports to the US and Japan.” .”
“In contrast, exports to China and Hong Kong remain significant frelatively little.”
Meanwhile, the value of imported goods rose 2.7% to $11.12 billion in August from $10.83 billion a year ago. Month-on-month, imports fell by 0.02%.
In the year to date, imports fell by 0.55% year-on-year to $83.7 billion.
Chief Economist Rizal Commercial Banking Corp. Michael L. Ricafort pointed out that the year-on-year increase in August imports in peso currency compared to the dollar.
“The rapid growth of exports compared to imports may be related to the exchange rate of the peso which has the potential to make the purchase of goods cheaper from the point of view of the local population, thereby increasing demand,” he said in a Viber message.
A strong peso also makes Philippine exports more expensive for international buyers, thus leading to a wider defit, mr. Ricafort added.
The peso closed at P56.111 against the dollar at the end of August, strengthening by P2.254 from its P58.365 at the end of last month.
The Development Budget Coordination Committee (DBCC) projects a 3 percent and 4 percent growth in exports and imports, respectively, this year.
DECLINE OF FOREIGN EXPORTS
Manufactured goods, which account for 81.2% of the country’s export receipts, fell 0.6% to $5.48 billion in August from $5.51 billion a year earlier.
Electronic products, which make up the majority of manufactured exports, fell 8.2% year-on-year to $3.57 billion in August.
Semiconductor exports also fell 13.8% to $2.69 billion in August. Exports of mineral products decreased by 13.4% to $582.36 million.
The United States remained the top destination for Philippine-made goods in August with an export value of $1.22 billion, accounting for 18.1% of the total.
This was followed by Hong Kong with $942.56 million (14% of the total), Japan ($935.33 million or 13.9%), China ($849.38 million or 12.6%) and South Korea ($332.64 million or 4.9%). Other leading export markets include the Netherlands, Singapore, Taiwan, Germany, and Thailand.
HISTORY
Meanwhile, imports of raw materials and intermediate goods grew 5.2% year-on-year to $4.06 billion in August. This accounted for 36.5% of total imports.
Imports rose 9.6% year-on-year to $3 billion, while imports were steady at $2.24 billion.
Imports of fossil fuels, lubricants and related products fell 9.1% to $1.79 billion in August.
“Real demand for imports is still weak, as imports have stagnated, while demand for large imports remains depressed,” said Mr. Chanco.
China was the largest source of imports at $2.79 billion, accounting for a quarter of the total import bill in August.
It was followed by Indonesia ($972.4 million or 8.7% of the total), South Korea ($925.36 million or 8.3%), Japan ($827.11 million or 7.4%) and the United States ($707.33 million or 6.4%).
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