The country’s trade-in-goods deficit in April widened to $3.62 billion from a $1.55-billion gap a year ago as imports surged 22.2 percent while exports fell 8.5 percent, data from the Philippine Statistics Authority on Friday show.
The PSA said total external trade in goods in April reached $13.84 billion, 8.8 percent higher than $12.73 billion recorded during the same month in 2017.
Total exports dropped 8.5 percent to $5.11 billion in April from $5.59 billion a year ago, the fourth consecutive month of decline, dragged by the decrease in non-electronic manufactured products (wood manufactures, machinery and transport equipment, chemicals, processed food and beverages, and furniture and fixtures) and agro-based products.
Total imports rose 22.2 percent to $8.73 billion in April from $7.14 billion a year ago, up from a tepid increase of 0.3 percent in March this year.
Economic Planning Secretary Ernesto Pernia said the government should seize the benefits of free trade agreements with other countries and forge new ties to expand the market for exports.
“The current turnout of imports is encouraging. But much has to be done to create an environment that is necessary for exporters to thrive. The signing into law of the Ease of Doing Business Act of 2018 is a step in the right direction,” Pernia said in a statement.
He said the new law could reduce business costs, encourage wider participation among firms, and attract foreign investors—eventually boosting exports in the near to medium term.
The 8.5-percent decline in exports for the month of April was brought about by the decreases posted by six out of the top 10 commodities led by exports of machinery and transport equipment (45 percent); gold (25.2 percent); ignition wiring set and other wiring sets used in vehicles, aircrafts and ships (24.4 percent); coconut oil (23.9 percent); other manufactured goods (2.1 percent); and electronic equipment and parts (1 percent).
The 22.2-percent increase in imports in April, meanwhile, was triggered by the increase of the top 10 major import commodities.
These were miscellaneous manufactured articles (49.1 percent); plastic in primary and non-primary forms (41.5 percent); telecommunications equipment and electrical machinery (33.6 percent); transport equipment (31.4 percent); iron and steel (30.8 percent); other food and live animals (29.4 percent); mineral fuels, lubricants and related materials (27.1 percent); organic and inorganic chemicals (25.1 percent); industrial machinery and equipment (24.1 percent); and electronic products (15.2 percent).
Hong Kong ranked first with an export value of $837.76 million or a share of 16.4 percent of total exports in April. This represents an increase of 25.7 percent from $666.58 million in April 2017.