Philippines’ trade deficit widens to $4.94 billion in June

By Beatriz Marie D. Cruz, Senior Reporter

THE PHILIPPINES’ trade deficit in goods ballooned to $4.94 billion in June as exports and imports posted double-digit growth, the Philippine Statistics Authority (PSA) said.

Preliminary data from the PSA showed the trade-in-goods balance — the difference between exports and imports — stood at a $4.94-billion deficit in June, widening by 12.3% from $4.4 billion recorded in the same month last year.

Month on month, the trade gap narrowed from the $6.1-billion deficit posted in May.

June saw the smallest trade gap in four months or since the $4.01-billion gap in February.

The country’s trade balance has been in deficit for more than a decade or since the $64.95-million surplus recorded in May 2015.

PSA data showed that imports jumped by 19.6% to $13.71 billion in June, faster than 15.8% increase in the same month last year but slower than the 28.2% rise in May.

On the other hand, merchandise exports jumped by 24.1% to $8.77 billion, slower than the 26.9% increase a year ago but faster than the 8.6% growth in May.

In the first half of the year, the trade-in-goods deficit ballooned by 25.85% by $30.81 billion from $24.48 billion last year.

For the January—June period, imports jumped by 17.84% to $77.53 billion from $65.79 billion.

Merchandise exports rose by 13.09% to $46.72 billion from $41.31 billion a year ago.

The Development Budget Coordination Committee projects exports and imports to grow by 3% and 5%, respectively, this year.