The country’s trade-in-goods deficit declined by 21 percent in May to $4.396 billion from $5.56 billion a year ago, as exports rose 1.9 percent and imports contracted by 8.8 percent, latest data from the Philippine Statistics Authority showed Tuesday.
This resulted in a $23.988-billion trade deficit in the first five months, slightly higher than $23.963 billion a year earlier.
“Exports recorded to among six-month highs after the pickup in electronic exports, which are the country’s largest exports after the easing of prices/inflation, especially lower prices of global oil and other major commodities that reduced the input costs of exporters,” said Michael Ricafort, chief economist of Rizal Commercial Banking Corp.
Ricafort said imports also picked up to among the highest since the start of 2023 amid lower prices of imported commodities and stronger peso exchange rate that helped lower importation costs in recent months.
“[The] trade deficit [is] already among the narrowest in more than a year, thereby partly supporting the stronger peso exchange rate recently,” Ricafort said.