Trade deficit widens to $4.93 billion in March

MANILA, Philippines — The Philippines’ trade deficit widened in March as merchandise imports continued to outpace the export of goods, according to the Philippine Statistics Authority (PSA).

Preliminary data from the PSA yesterday showed the balance of trade in goods or difference between the value of exports and imports amounted to a deficit of $4.93 billion in March this year, higher than the $4.59 billion shortfall in the same month in 2022, and the $3.91 billion gap last February.

The country’s total export sales reached $6.53 billion in March this year, down by 9.1 percent from the $7.18 billion in the same month a year ago.

Exports in March, however, were higher than the $5.08 billion in February this year.

Electronics products posted the biggest year-on-year decline in exports value in March, dipping to $3.49 billion this year from $3.96 billion.

This was followed by coconut oil, which decreased by $51.82 million; and travel goods and handbags, which declined by $34.69 million.

China was the top destination of Philippine exports in March, with $1.42 billion or 21.8 percent share of the total.

The country’s imports amounted to $11.46 billion in March this year, 2.7 percent lower than the $11.77 billion recorded in the same month last year.

March imports, however, went up from $8.98 billion in February.

Commodity groups with the biggest year-on-year drop in imports value in March were mineral fuels, lubricants and related materials, which fell by $519.28 million; electronic products by $415.29 million; and medicinal and pharmaceutical products by $221.01 million.

China was also the Philippines’ biggest supplier of imported goods, with $2.57 billion or 22.4 percent of the total.

The country’s total external trade in goods amounted to $17.98 billion in March, lower than the $18.95 billion in the same month last year, but higher than the $14.06 billion in February this year.

For the first quarter, the country’s trade deficit reached $14.58 billion, wider than the $13.08 billion in the same period last year.

Exports in the January to March period slid by 13.2 percent to $16.86 billion from $19.43 billion in the same period in 2022.

Imports, meanwhile, registered a smaller decline of 3.3 percent to $31.44 billion in the first quarter this year from $32.51 billion in the same period last year.

“For the coming months, the recent easing of some global commodity prices amid risk of US economic slowdown or recession would somewhat be a challenge or risk for exports, but could still help ease the country’s imports of oil and other major global commodities,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said.

He said the corrections in global commodity prices of natural gas, coal, wheat, soybean, iron, steel, copper, and nickel in recent months, could help reduce the country’s import bill, narrow the trade deficit, and help ease inflationary pressures.