The country’s trade deficit widened to a record high level on a monthly basis in May as the value of imports posted a double-digit hike, amid elevated prices of some major commodities worldwide.
According to the Philippine Statistics Authority, the trade deficit widened by 78.6 percent to $5.68 billion from $3.18 billion a year ago.
It was also higher than the April trade deficit of $5.35 billion.
Total imported goods in May, which amounted to $11.99 billion, increased at an annual rate of 31.4 percent from $9.12 billion a year ago.
In April 2022, it increased at a slower rate of 29.4 percent to $11.49 billion.
On the other hand, the country’s total export sales in May 2022, amounting to $6.31 billion, reflected an annual rate hike of 6.2 percent from the $5.94 billion recorded in the same period last year.
In April, exports also rose 6.2 percent to $6.14 billion.
Michael Ricafort, Rizal Commercial Banking Corp. chief economist, said the country’s trade deficit widened to a record level as it may have been bloated by elevated prices of imported oil and other major global commodities largely brought about by the Russia-Ukraine war, as well as the further re-opening of the local economy towards greater normalcy that fundamentally led to some pick up in imports.
“The latest slowdown in exports and the increase in imports could be partly attributed to higher prices/inflation as well as higher interest rates locally and worldwide, in terms of higher input costs/prices, as well as some lockdowns in China over the past three to four months that reduced global trade activities, including the country’s exports,” Ricafort said.
“Nevertheless, exports and imports are still near record highs, as the economy re-opened further towards greater normalcy… some global supply chain disruptions since the pandemic started presented opportunities especially for some Philippine exporters to sell products with limited supply such as semiconductors, among others,” he added.
