Philippines Posts Smallest Trade Gap in 15 Months


The Philippine's trade deficit narrowed to USD 2.47 billion in June of 2019 from USD 3.55 billion in the same month a year earlier. This was the smallest trade gap since March last year, as exports rose while imports tumbled.

Year-on-year, exports rose by 1.5 percent to USD 6.01 billion, after a 1 percent gain in the previous month. It was the third straight month of increase in exports, and the fastest growth, as sales advanced for  cathodes & sections of cathodes, of refined copper(41.7%); bananas (24.4%);  ignition wiring set and other wiring sets used in vehicles, aircrafts and ships (17.6%); gold (10.1%); machinery and transport equipment (3.0%), and other mineral products (1.1%). Also, sales of electronic products, the country's the country's top exports, rose by 4.3 percent. In contrast, sales fell for metal components (-11.0%); other manufactured products (-5.7%), and coconut oil (-0.9 percent).

Among the Philippines' major trading partners sales advanced to the US (9.2%), China (5.7%), South Korea (59.9%), Japan (2.0%), and Thailand (0.3%). Conversely, exports contracted to, Singapore (-14.4%), Taiwan (-17.4%), Netherlands (-8.2%), Hong Kong (-9.9%), Germany (-0.3%), the EU countries (-3.5%), and the ASEAN countries (-4.4%). Considering January to June, exports fell 0.8 percent from the same period of 2018.  
 
Imports plunged by 10.4 percent to USD 8.48 billion in June 2019, following a downwardly revised 5.2 percent fall in the prior month. This was the third straight month of yearly decline in inbound shipments, as shrank for iron & steel (-40.3%); cereals & cereal preparations (-29.4%); industrial machinery and equipment (-20.7%); plastics in primary and non-primary form (-16.4^);  transport equipment (-12.6%); telecommunication equipment and electrical machinery (-12.2%); and mineral fuels, lubricants (-7%); other food and live animals (-6.7%), and miscellaneous manufactured articles (-0.1%). In contrast, imports of electronic products rose 1.8%.
 
Purchases from China, the Philippines's largest supplier of imports, contracted 3.8 percent. Also, arrivals fell from Japan (-9.2%), South Korea (-24.3%), the US (-4.2%), Thailand (-26.1%), Singapore (-6.4%), Indonesia (-16.9%), Taiwan (-28.5%), and the ASEAN countries (-7.4%). Conversely, purchases grew from Hong Kong (10.1%), Malaysia (36.5%), and the EU (3.4%). Regarding January to June 2019, imports fell by 1 percent from the same period the prior year.
 
Considering the first half of the year, exports fell 0.8 percent from a year earlier while imports declined at faster 1.0 percent, recording a USD 19 billion trade gap.
 
 
 


Philippines Posts Smallest Trade Gap in 15 Months


National Statistics Office of Philippines l Chusnul Ch Manan | chusnul@tradingeconomics.com
8/7/2019 2:24:08 AM