The Philippine Statistics Authority (PSA) reported that the country’s trade deficit widened in June this year as exports declined faster than imports.
The balance of trade in goods in the country recorded a deficit of $4.3 billion in June, higher by 9.3 percent than the $3.9 billion deficit in the same period last year but lower compared to the $4.71 billion gap in May.
A trade deficit signifies that the value of imports surpassed export receipts, whereas a trade surplus indicates higher export shipments than imports.
The value of exports declined 17.3 percent to $5.57 billion from $6.73 billion in the previous year and also lower than the $6.33 billion recorded in May.
The most significant decreases were observed in electronic products, which fell $965.14 million, followed by cathodes and sections of cathodes, of refined copper down $97.13 million, other manufactured goods lower by $59.99 million, machinery and transport equipment dropped $53.15 million, and other mineral products down $49.52 million.
Of the total exports, electronic products contributed the largest share with $2.99 billion or 53.7 percent, followed by other manufactured goods with $252.03 million or 5.1 percent, and other mineral products with $252.03 million or 4.5 percent.
The United States of America emerged as the top destination for Philippine exports, with a value of $897.80 million. It was closely followed by Hong Kong with $886.64 million, the People’s Republic of China with $868.44 million, Japan with $746.97 million, and South Korea with $240.26 million.
Meanwhile, imports amounted to $9.87 billion in June, showing a decrease from $11.038 billion in May and a significant decline of 7.5 percent compared to the $10.667 billion in June 2023.
The most notable decrease in imports was seen in transport equipment, which fell by $446.67 million.
This was followed by metalliferous ores and metal scrap down by $338.47 million, telecommunication equipment and electrical machinery down by $48.23 million, miscellaneous manufactured articles down by $42.38 million, and fertilizers manufactured down by $34.37 million.
Electronic products accounted for the largest share of imports, totaling $2.23 billion or 22.6 percent, followed by mineral fuels, lubricants and related materials with $1.57 billion or 15.9 percent, and transport equipment with $787.92 million or 8 percent.
China is still the top source of imports with $2.60 billion, followed by Indonesia with $861.69 million, Japan with $763.20 million, South Korea with $715.14 million, and USA with $658 million.
The latest data revealed that the total trade for June amounted to $15.44 billion, which was lower than the $17.369 billion recorded in May and represented an 11.3 percent reduction compared to the $17.40 billion in the same month last year.