The country’s trade deficit widened to another record high level on a monthly basis in June as the value of imports continued to post double-digit hikes.
Data released by the Philippine Statistics Authority (PSA) showed the trade deficit widened by 75.4 percent to $5.84 billion from $3.33 billion a year ago.
It was also higher than the May trade deficit of $5.56 billion.
Total imported goods in June 2022, which amounted to $12.49 billion, increased at a rate of 26 percent from the $9.91 billion posted a year ago.
Year-to-date, the annual total import value has amounted to $68.32 billion.
This represents an annual increase of 26.7 percent from the total import value of $53.93 billion in January to June 2021.
The PSA said most of the imported goods were electronic products with an import value of $2.87 billion or a share of 22.9 percent to the total imports in June 2022.
This was followed by mineral fuels, lubricants and related materials valued at $2.64 billion (21.2 percent) and transport equipment that amounted to $878.27 million (7 percent).
The People’s Republic of China was the country’s biggest supplier of imported goods valued at $2.55 billion or 20.4 percent of the total imports in June.
Meanwhile, the country’s total export sales in June 2022 amounted to $6.64 billion, inching up by 1 percent from the year ago level of $6.58 billion.
The year-to-date annual total export earnings amounted to $38.53 billion, posting an annual increase of 7.1 percent.
Electronic products continued to be the country’s top export in June with total earnings of $3.52 billion. This amount accounted for 53 percent of the total exports during the period.
This was followed by other mineral products with an export value of $486.9 million (7.3 percent) and other manufactured goods that amounted to $349.01 million (5.3 percent).
Exports to the United States of America comprised the highest export value amounting to $1.05 billion or a share of 15.8 percent to the total exports during the month.
The PSA further reported that the country’s total external trade in goods for the month amounted to $19.13 billion which indicates an annual growth rate of 16.1 percent.
In the previous month, the annual increase was faster at 20.8 percent, while in June 2021, it grew by 32 percent.
“I think that where we are coming from, that is expected, that the trade deficit slightly to grow… we are also likely to see large importations for construction because we are ramping up and continuing the rapid growth in our construction spending,” Balisacan said.
“We would expect trade deficits to continue and to increase, but again, the expectation that these investments that we are putting in place, the improvement in transport, connectivity and better tower facilities will improve the competitiveness of our industries.” he added. – Angela Celis
