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Philippines: Trade deficit narrows in November
MANILA, Philippines — The Philippines’ trade gap narrowed in November 2022 from the previous year as exports posted growth while imports declined, according to the Philippine Statistics Authority (PSA).
Preliminary data released by the PSA yesterday showed the balance of trade in goods or the difference between the country’s exports and imports registered a $3.68 billion deficit in November last year, smaller than the $4.71 billion trade shortfall in the same month in 2021.
November’s trade deficit, however, was wider compared to the $3.31 billion gap in October last year.
The country’s merchandise exports rose 13.2 percent to $7.1 billion in November from $6.27 billion in the same month in 2021.
The November exports, however, were lower than the $7.71 billion recorded in October last year.
Electronic products remained the country’s top export in November last year, accounting for 64.3 percent of the total.
Total earnings from outbound shipments of electronic products reached $4.57 billion in November last year, up 23 percent from $3.71 billion in the same month in 2021.
Other major commodity groups with higher annual exports value in November were other mineral products, which increased by 51 percent; ignition wiring set and other wiring sets used in vehicles, aircrafts and ships up by 23.1 percent; cathodes and sections of cathode, of refined copper up by 8.7 percent; and other manufactured goods such as blister copper and other unrefined copper and other cigarettes containing tobacco up by 4.8 percent.
Meanwhile, the country’s imports dipped by 1.9 percent year-on-year to $10.78 billion in November last year.
The country’s imports posted a 7.7 percent year-on-year growth in October last year, and 36.8 percent year-on-year increase in November 2021.
The PSA attributed the annual drop in imported goods in November to the lower value of four commodity groups led by electronic products, with the biggest decline at 10.1 percent; followed by transport equipment at 8.8 percent; cereals and cereal preparations at 5.9 percent; and industrial machinery and equipment at 3.5 percent.
“Imports could have been partly slowed by lower prices of crude oil and other global commodities imported by the country, higher prices or inflation of some imported products that somewhat reduced demand,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said.
He also attributed the dip in imports to the weaker peso that increased importation costs, as well as higher interest rates that led to higher borrowing costs or financing costs and lower demand for loans for importation activities.
Total trade in goods rose 3.6 percent to $17.88 billion in November last year from $17.26 billion in the same month in 2021.
In the January to November period, the country’s total merchandise exports went up seven percent to $73.17 billion.
Meanwhile, the country’s imported goods grew 20.3 percent in the 11 months to November to $126.86 billion from $105.49 billion.
For the January to November period, the country’s trade deficit reached $53.69 billion, wider than the $37.11 billion in the same period in 2021.
Given the latest data, Ricafort said the ”trade deficit for 2022 could reach close to $60 billion.”
In 2021, the country had a total trade gap of $42.2 billion.
Source: https://www.philstar.com/business/2023/01/11/2236683/trade-deficit-narrows-november