THE country’s trade deficit narrowed in November last year compared to a month earlier as both imports and exports fell, preliminary data from the Philippine Statistics Authority (PSA) showed on Thursday.
At $4.77 billion, the shortfall was lower than October’s $5.78 billion but was largely at the same level as a year ago.
Total trade in goods grew to $16.14 billion in November, down from the month- and year-earlier $18.16 billion and $17.23 billion.
Exports were lower at $5.69 billion compared to $6.18 billion a month ago and $6.23 billion a year earlier. Imports also fell to $10.46 billion from $11.97 billion in October and $11.0 billion in November 2023.
Imports accounted for 64.8 percent of total external trade last month, with the rest taken up by outbound shipments.
Year to date, exports edged down to $67.55 billion from $67.83 billion in the comparable 2023 period.
Imports, on the other hand, grew to $117.51 billion in January-November from $116.25 billion.
Electronics remained the country’s top export, accounting for $2.79 billion or 48.9 percent of total exports in November. Manufactured goods and machinery and transport equipment followed at $420 million (7.4 percent) and $245.61 million (4.3 percent), respectively.
The United States was the biggest buyer of Philippine-made goods during the month, having purchased $969.09 million or 17.0 percent of total exports.
Rounding out the top five were Japan ($916.12 million or 16.1 percent), China ($786.35 million or 13.8 percent), Hong Kong ($600.24 million or 10.5 percent) and Singapore ($288.11 million or 5.1 percent).
Electronic products were also the Philippines’ biggest import for November at $2.46 billion or 23.5 percent of the total.
Mineral fuels, lubricants and related materials followed at $1.31 billion (12.5 percent) and transport equipment at $819.93 million (7.8 percent) was third.
China was the country’s biggest supplier, providing $2.82 billion worth of goods or 27.0 percent of total inbound shipments.
It was followed by Indonesia ($877.77 million or 8.4 percent), Japan ($827.75 million or 7.9 percent), Korea ($774.55 million or 7.4 percent) and the USA ($621.3 million or 5.9 percent).
Commenting on the latest merchandise trade data, Pantheon Macroeconomics economist Miguel Chanco said the narrower trade deficit reflected weak economic activity.
“The main concern still is the general underperformance and stagnation of capital goods imports and what this says about investment activity in the economy,” he added.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said lower interest rates from the central bank and potential Fed rate cuts could boost trade and investment.
However, potential protectionist policies under US President-elect Donald Trump could slow global trade and economic growth, he added.
Be the first to comment