Trade gap lowest in nearly 3 years

MANILA, Philippines — The country posted its lowest trade gap in nearly three years in March as both exports and imports declined, according to the Philippine Statistics Authority (PSA).

Based on PSA data,  the balance of trade in goods or the difference between  exports and imports amounted to a deficit of $3.18 billion in March, 37 percent lower than the $5.02 billion trade shortfall in the same period in 2023.

National Statistician Dennis Mapa said this was the lowest trade deficit since May 2021 when the country had a trade shortfall of $3.179 billion.

The March trade deficit was also lower than the previous month’s $3.66 billion shortfall.

The value of the country’s merchandise exports declined by 7.3 percent to $6.13 billion in March from $6.61 billion in the same month last year.

Posting the biggest drop in export value in March was other mineral products, which declined by $195.08 million.

This was followed by other manufactured goods, which decreased by $66.48 million and cathodes and sections of cathodes of refined copper with a $56.05 million decline.

Electronic products, which remained the country’s top export, rose slightly to $3.59 billion in March from $3.56 billion in the same month last year.

The US was the country’s biggest market for exports,  accounting for 15.7 percent or $961.94 million of the total in March.

Imported goods posted a bigger drop of 20 percent to $9.31 billion in March from $11.63 billion in the same month last year.

Imports of electronic products, valued at $350.61 million, registered the largest drop in March.

This was followed by mineral fuels, lubricants and related materials, which decreased by $323.56 million and metalliferous ores and metal scrap with a $287.48-million decline.

China was the country’s largest source of imported goods amounting to $2.27 billion or 24.4 percent of the total imports in March.

Total external trade in goods reached $15.44 billion in March, down by 15.4 percent from $18.25 billion in the same month last year.

For the first quarter, the country had a trade deficit of $11.24 billion, 22.2 percent lower than the $14.45 billion in the same period in 2023.

Total merchandise exports of the country reached $17.98 billion  from January to March, up by 4.8 percent from  $17.16 billion in the same period last year.

Meanwhile, the value of the country’s total imports in the first quarter declined 7.6 percent to $29.22 billion from $31.61 billion in the same period last year.