Philippines Trade Deficit Widens in June

Philippines reported a trade deficit of USD 2.10 billion in June of 2016, compared to a USD 0.57 billion gap a year earlier and in line with expectations, as exports fell while imports rose.
PSA l Rida Husna | 8/25/2016 1:10:40 PM
Year-on-year, sales declined by 11.4 percent to USD 4.71 billion, following a 3.8 percent fall in May. It was the 15th straight month of decline and the largest drop since March, driven by other mineral products (-41.1 percent), machinery and transport equipment (-31.6 percent), other manufactures (-26.1 percent), chemicals (-25.7 percent), woodcrafts and furniture (-19.2 percent); ignition wiring set and other wiring Sets used in vehicles, aircrafts and ships (-10.2 percent), metal components (-2.2 percent) and coconut oil (-2.0 percent). Exports of electronic products, the country's top export revenues, also decreased by 5.1 percent. In contrast, outbound shipments rose only for miscellaneous manufactured articles (+137.7 percent). 

Sales fell to Japan (-23.2 percent), the US (-0.7 percent), China (-14.0 percent), Singapore (-1.1 percent), the ASEAN countries (-7.8 percent) and the EU countries (-11.4 percent). In contrast, shipments rose to Hong Kong (+3.2 percent). In contrast, outbound shipments to Hong Kong grew by 3.2 percent to USD 589.36 million. 

Imports increased by 15.4 percent to USD 6.86 billion, following a 39.3 percent growth in the preceding month while market expected a 14.7 percent rise. Purchases were higher for most categories: telecommunication equipment and electrical machinery (+91.5 percent), plastics in primary and non-primary forms (+71.6 percent), iron and steel (+67.0 percent), industrial machinery and equipment (+57.8 percent), power generating and specialised machinery (+57.8 percent), miscellaneous manufactured articles (+55.5 percent), transport equipment (+50.7 percent) and other food and live animals (+15.9 percent). In contrast, imports fell for: electronic products (-15.8 percent) and mineral fuels, lubricants and related materials (-5.1 percent).

Purchases from China, the biggest source of purchases for Philippines, rose  45.8 percent year-on-year to USD 1.29 billion. Those from Japan also increased by 26.1 percent to USD 852.2million, followed by Thailand (+23.7 percent to USD 531.89 million), the US (+25.5 percent to USD 530.5 million) and the ASEAN countries (+17.9 percent to USD 1.79 billion). In contrast, imports fell from Taiwan (-16.3 percent to USD 490.31 million) and the EU countries (-14.2 percent to USD 534.86 million). 

In May 2016, trade deficit was at USD 2.02 billion.

From January to June 2016, the country posted a USD 11.9 billion trade deficit with exports declining by 7.5 percent compared to the same period a year earlier while imports increasing by 17.7 percent.

Philippines Trade Deficit Widens in June