Trade deficit narrows on weak imports, exports
The country’s trade deficit narrowed in October this year as both exports and imports contracted, data from the Philippine Statistics Authority showed.
The gap in the trade balance, which is the difference between the value of export and import, reached $1.77 billion in October, down by 50 percent from $3.57 billion in the same month last year.
Likewise, the latest trade deficit data is slightly smaller compared with $1.78 billion in the previous month.
Exports declined by 2.2 percent to $6.2 billion from $6.34 billion a year ago, while imports reached $7.8 billion, also lower by 21 percent compared with $9.91 billion last year.
The October performance brought the country’s first 10-month trade gap to $17.92 billion, below by 47 percent compared with $34 billion in same period lats year.
Total merchandise trade also declined during the month by 13 percent from $16.25 billion to $14.18 billion.
In a statement, Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said that in spite the declines, there are some positive takeaways from the trade data.
Chua noted that g exports to the country’s leading regional trading partners such as China and Southeast Asian peers both grew in double digits.
Moreover, Chua said capital goods imports increased month-on-month, suggesting that business activities have been responding to the government’s approach for a targeted and gradual reopening and increased mobility.
But he also highlighted that more could be done to help accelerate our recovery.
“As traditional means of connecting buyers to suppliers are limited at the moment, the government and the private sector need to work together to harness digital platforms and alternative means to source from, and supply to, the country,” Chua said.
Chua added that they continue to push for the amendments in Public Service Act to open opportunities and spur investments in critical infrastructure that can increase the productivity and competitiveness of exporters.
He then reiterated that a calibrated and gradual resumption of businesses with strict implementation of health and safety protocols remain crucial in reinvigorating the economy.
“Fundamental to these efforts is the provision of safe and regular transport to allow for worker mobility,” Chua said.