The country’s trade deficit widened in May after a measly decline in imports and exports, data from the Philippine Statistics Authority (PSA) showed Wednesday, July 10.
The trade deficit, or the difference between the value of exports and imports, reached $4.60 billion in the fifth month of 2024, up by 4.5 percent from $4.40 billion in May last year. However, it is slightly lower than the $4.72 trade deficit in April.
Export sales declined by 3.1 percent to $6.33 billion from $6.53 billion in the previous year, but they were higher than $6.28 billion a month earlier.
During the month, electronic products posted the highest decline in export value, by $190.23 from $3.75 billion to $3.56 billion. This was followed by other mineral products, from $43.66 million to $302.90 million.
Ignition wiring and other wiring sets used in vehicles also decreased by $29.54 million to $197.50 million, travel goods and handbags by $15.30 million to $38.08 million, and gold by $13.61 million to $97.31 million.
By major trading partner, exports to United States of America comprised the highest export value amounting to $1.08 billion, followed by Hong Kong, $904.79 million; Japan, $882.70 million; People’s Republic of China, $847.12 million; and Thailand, $267.14 million.
Meanwhile, import receipts were valued at $10.93 billion in May, down 12 percent from $10.18 billion a year ago and lower than $10.99 billion in January.
Transport equipment declined by $348.54 million to $891.73 million, other food and live animals by $62.73 million to $431.58 million, and electronic products by $54.87 million to $2.150 billion.
People’s Republic of China remained the country’s biggest supplier of imported goods valued at $2.73 billion, followed by the Republic of Korea, $989.60 million; Indonesia, $972.15 million; USA, $748.19 million; and Thailand, $707.44 million.
Robert Carnell, Asia-Pacific head of research at ING, said that the May data was still in line with forecasts but is upset by slight growth in exports and imports month-on-month, resulting in a less favorable deficit.
“However, the net result of no change in the deficit was in line with expectations and should have no substantial or lasting consequences for the PHP,” Carnell said in an email.