December 11, 2024 | 12:00am
MANILA, Philippines — The country posted its biggest trade gap in over two years in October as exports dropped while imports increased.
Preliminary data released by the Philippine Statistics Authority (PSA) yesterday showed the balance of trade in goods, or the difference between the value of exports and imports, amounted to a $5.80-billion deficit in October, 36.8 percent higher than the $4.24 billion gap in the same month last year.
The October trade deficit is the largest in 26 months or since the $5.99 billion shortfall posted in August 2022.
It is also higher than the $5.10 billion trade deficit in September this year.
From January to October, the country’s trade deficit reached $45.22 billion, wider than the $43.64 billion in the same period last year.
PSA data also showed the country’s exports of goods dipped by 5.5 percent to $6.16 billion in October from $6.52 billion in the same month of the previous year.
Electronic products, the top commodity group exported by the Philippines, accounted for 46.5 percent of the total exports value in October.
The value of the country’s electronic exports fell 23.3 percent to $2.87 billion in October from $3.73 billion in the same month a year ago.
In terms of export markets, the US continued to account for the highest export value amounting to $995.26 million or 16.2 percent of total Philippine exports in October.
From January to October, the country’s exports increased slightly to $61.83 billion from $61.60 billion in the same period last year.
Goods imported by the Philippines, however, went up by 11.2 percent to $11.96 billion in October this year from $10.76 billion in the same month in 2023.
Electronic products recorded the highest import value amounting to $2.67 billion or 22.3 percent of the country’s total imports in October.
China remained the Philippines’ top source of imported goods, accounting for $3.07 billion or 25.6 percent of the country’s total imports in October.
Philippine imports in the January to October period increased by 1.7 percent to $107.05 billion from $105.25 billion in the same period last year.
The country’s total external trade in goods in October reached $18.13 billion, up by 4.9 percent from $17.28 billion in the same month of the previous year.
Earlier, Department of Trade and Industry (DTI) Export Marketing Bureau director Bianca Sykimte said the country’s total exports covering goods and services are expected to fall short of the $143.4 billion target for this year under the Philippine Export Development Plan (PEDP) due to the weak performance of merchandise exports.
While the 2024 PEDP export target is likely to be missed, she said the DTI remains optimistic that the lower export goal of $107 billion set under the Philippine Development Plan will be achieved this year.
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