The country’s trade deficit widened in July due to the year-on-year increase in the value of imports, data released by the Philippine Statistics Authority (PSA) showed.
The balance of trade in goods in July amounted to -$4.87 billion, indicating a trade deficit with an annual increase of 18 percent.
Value of imported goods in July amounted to $11.12 billion, up 7.2 percent from $10.37 billion in the same month of the previous year.
The commodity group with the highest annual increase in the value of imported goods was electronic products with $268.32 million.
This was followed by iron and steel, which increased by $194.4 million and industrial machinery and equipment with an annual increase of $92.31 million.
Total export sales in July amounted to $6.25 billion, inching up 0.1 percent from the $6.25 billion total export sales in the same month last year.
The commodity group with the highest annual increment in the value of exports in July 2024 was copper concentrates with $115.8 million.
This was followed by other manufactured goods with an annual increase of $105.12 million; and coconut oil with an annual increment of $92.13 million.
In July, the country’s total external trade in goods amounted to $17.37 billion, posting a 4.5 percent increase from the $16.62 billion total external trade in the same period last year.
In a statement, Michael Ricafort, Rizal Commercial Banking Corp. chief economist, said the trade deficit for the month is the widest in more than a year or since March 2023.
Ricafort said this largely reflected the faster growth in imports, due to the stronger peso-dollar exchange rate.
“The seasonal increase in importation activities in 3Q, a consistent pattern seen for many years/decades, could lead to further pick up (in) imports and wider trade deficit, as further peso appreciation vs. the US dollar recently would make imports cheaper while making exports more expensive,” Ricafort said.
