The country’s trade deficit narrowed in June to its lowest level in three-months, data from the Philippine Statistics Authority (PSA) showed.

Port Area

Based on the PSA report released on Friday, August 6, the gap in the trade balance, or the difference between the value of export and import, went down by 11 percent to $2.82 billion from $3.17 billion in the previous month.

However, the July trade deficit nearly doubled compared with $1.42 billion in the same month last year, but still the smallest amount since the $3.1 billion in April 2021.

In the first six-months of the year, the country’s trade-in-goods deficit widened by 53 percent to $17.44 billion from $11.37 billion in the same period in 2020.

The country’s exports amounted to $6.5 billion in June, up 17 percent from a year ago’s $5.53 billion.

Of the top 10 major export commodity groups, nine recorded annual increases led by cathodes and sections of cathodes, of refined copper with 161 percent, followed by ignition wiring set and others with 53.4 percent, and other manufactured goods with 40.5 percent.

By commodity group, electronic products continued to be the country’s top export with total earnings of $3.72 billion, accounting for 57.1 percent of the total.

It was followed by other manufactured goods with an export value of $404.44 million (6.2 percent); and export of cathodes and sections of cathodes, of refined copper which amounted to $259.78 million (4.0 percent).

United States of America, meanwhile, comprised the highest export value amounting to $1.09 billion or a share of 16.8 percent to the total during the month.

At end-June, export earnings increased 21 percent to $35.9 billion from $29.7 billion in the same period last year.

Meanwhile, total imported goods amounted to $9.33 billion, an increased of 34.2 percent compared with $6.95 billion in May.

The increment of imported goods was due to the increase in nine of the top 10 major commodity groups which was led by mineral fuels, lubricants and related materials with 131.8 percent increase, followed by transport equipment (129.5 percent); and iron and steel (120.4 percent).

Most of the imports were electronic products valued at $2.49 billion, or a share of 26.7 percent to the total.

It was followed by mineral fuels, lubricants and related materials, valued at $1.2 billion (12.8 percent); and transport equipment which amounted to $654.66 million (7.0 percent).

The People’s Republic of China was still the country’s biggest supplier of imported goods valued at $2.25 billion, equivalent to 24.1 percent of the total during the month.

In the first-semester, total import value jumped 30 percent to $53.34 billion from $41.1 billion in the same period last year.


Source: Manila Bulletin (https://mb.com.ph/2021/08/06/trade-deficit-narrows-to-three-month-low/?utm_source=rss&utm_medium=rss&utm_campaign=trade-deficit-narrows-to-three-month-low)