The Philippines posted a record monthly trade deficit of $2.84 billion in October, as imports jumped 13.1 percent to $8.2 billion and exports rose 6.6 percent to $5.4 billion.
Data from the Philippine Statistics Authority showed the October trade deficit was wider than the $2.22-billion deficit a year ago and $2.1 billion in September.
This brought the total trade deficit in the first 10 months to $21.95 billion, compared to the $21.74-billion shortfall in the same period last year.
Exports in January to October went up 11.7 percent to $53.1 billion, while imports rose 8.3 percent to $75.1 billion.
The National Economic and Development Authority said the 6.6-percent growth in exports in October was supported by the double-digit growth in shipments of gold (297 percent); electronic equipment and parts (43.3 percent); metal components (21.9 percent); fresh bananas (20.8 percent); other mineral products (19.6 percent); and electronic products (13.8 percent).
The increase in imports was attributed to the growth of demand for iron and steel (57.3 percent); organic and inorganic chemicals (40.4 percent); miscellaneous manufactured articles (28.1 percent); electronic products (23.3 percent); mineral fuels, lubricants and related materials (15.9 percent); and telecommunication equipment and electrical machinery (13.1 percent).
Neda director-general and Eeconomic Planning Secretary Ernesto Pernia said the continued exports growth, economic cooperation and trade facilitation initiatives would sustain trade gains going forward. Julito G. Rada
“We are encouraged by the performance of Philippine trade in recent months, especially with the consistent positive performance of exports. Cooperation and trade initiatives are integral to sustaining these gains,” Pernia said.
“For 2018, we are looking at improved performances in exports of agricultural products and semiconductors, which continue to comprise a huge portion of Philippine exports,” Pernia said.
This follows the expected rise in global prices of agricultural exports and the expected 7-percent growth in global sales of semiconductors.
Pernia said these gains and positive outlook would be accompanied by initiatives such as Asean Seamless Trade Facilitation Indicators that could help in reducing trade transaction costs by 10 percent by 2020.
He said the Asean-Hong Kong, China Free Trade Agreement and Asean–HKC Investment Agreement signed last month would also increase and facilitate trade in goods and services within the region.
The AHKFTA broadens market access, promotes trade confidence and cooperation while AHKIA covers protection, promotion and facilitation of investment.
“Against this backdrop, Philippine exports will likely remain in the positive territory and should pick up due to higher demand during the holiday season,” he said.