PH trade deficit narrows to $1.83 billion in July
Published Sep 10, 2020 04:59 pm
The country’s trade deficit decreased by half in July as imports weakened while exports dropped at a much slower pace, data from the Philippine Statistics Authority (PSA) showed.
The Philippines’ balance of trade in goods, which measures the difference between the value of export and import, posted a $1.83 billion deficit in July, lower by 50 percent compared with the $3.64 billion in the same month last year.
“The annual drop in trade deficit during the period was faster than the year-on-year decline in the previous month of 47.8 percent and in July a year ago of 9.3 percent,” the PSA said in a statement.
Total export sales in reached $5.65 billion in July, while imports amounted to $7.48 billion.
PSA data showed that exports continued to shrink during the month but at a slower rate of 9.6 percent from 12.5 percent drop a month ago.
“The export earnings in July 2020 marked the fifth month in a row in which value of export contracted but the annual drop continued to weaken as it posted its third consecutive month of slower decline during the period,” PSA said.
Of the top 10 major commodity groups, eight had posted their declines led by gold (-41.6 percent); ignition wiring set and other wiring sets used in vehicles, aircrafts and ships (-35.9 percent); and machinery and transport equipment (-30.9 percent).
In January to July, export sales reached $34.13 billion, also lower by 16.4 percent compared with $40.89 billion in the same period last year.
Along with exports, import sales also remained at downtrend with an annual rate of -24.4 percent, marking its 15th straight month contraction.
The decrement of imported goods in July was due to the year-on-year decreases in all of the top 10 major import commodities led by transport equipment (-69.2 percent); cereals and cereal preparations (-37.8 percent); and mineral fuels, lubricants and related materials (-36.2 percent).
At end-July, import value reached $46.64 billion, lower by 28.1 percent compared with $64.89 billion in year ago.
The country’s total external trade in goods during the month amounted to $13.13 billion, declined at an annual rate of 18.6 percent year-on -year.
The Philippines’ balance of trade in goods, which measures the difference between the value of export and import, posted a $1.83 billion deficit in July, lower by 50 percent compared with the $3.64 billion in the same month last year.
“The annual drop in trade deficit during the period was faster than the year-on-year decline in the previous month of 47.8 percent and in July a year ago of 9.3 percent,” the PSA said in a statement.
Total export sales in reached $5.65 billion in July, while imports amounted to $7.48 billion.
PSA data showed that exports continued to shrink during the month but at a slower rate of 9.6 percent from 12.5 percent drop a month ago.
“The export earnings in July 2020 marked the fifth month in a row in which value of export contracted but the annual drop continued to weaken as it posted its third consecutive month of slower decline during the period,” PSA said.
Of the top 10 major commodity groups, eight had posted their declines led by gold (-41.6 percent); ignition wiring set and other wiring sets used in vehicles, aircrafts and ships (-35.9 percent); and machinery and transport equipment (-30.9 percent).
In January to July, export sales reached $34.13 billion, also lower by 16.4 percent compared with $40.89 billion in the same period last year.
Along with exports, import sales also remained at downtrend with an annual rate of -24.4 percent, marking its 15th straight month contraction.
The decrement of imported goods in July was due to the year-on-year decreases in all of the top 10 major import commodities led by transport equipment (-69.2 percent); cereals and cereal preparations (-37.8 percent); and mineral fuels, lubricants and related materials (-36.2 percent).
At end-July, import value reached $46.64 billion, lower by 28.1 percent compared with $64.89 billion in year ago.
The country’s total external trade in goods during the month amounted to $13.13 billion, declined at an annual rate of 18.6 percent year-on -year.