Trade deficit widens in May

MANILA, Philippines — The country’s trade deficit widened in May as exports declined, while imports were nearly flat from a year ago, according to the Philippine Statistics Authority (PSA).

Preliminary data released by the PSA yesterday showed the balance of trade in goods or the difference between the value of exports and imports amounted to a $4.60-billion deficit in May, 4.5 percent higher than the $4.40 billion shortfall in the same month last year.

The May trade gap, however, was smaller than the $4.73 billion trade shortfall in April.

From January to May, however, the country’s trade shortfall declined by 13 percent to $20.59 billion from $23.69 billion in the same period last year as exports during the five-month period rose by 7.8 percent to $30.84 billion from $28.61 billion in the same period in 2023.

Purchases of imported goods, on the other hand, declined by 1.7 percent to $51.43 billion in the first five months from $52.29 billion a year ago.

For May alone, the country’s total merchandise export sales dipped by 3.1 percent to $6.33 billon from $6.53 billon in the same month last year. This is a reversal of the 27.9 percent year-on-year growth in merchandise export sales posted in April.

Electronic products posted the biggest decline in exports value, dropping by $190.23 million or 5.1 percent to $3.56 billion in May from $3.75 billion in the same month in 2023.

This was followed by other mineral products, which decreased by $43.66 million in May from the same month last year and ignition wiring set and other wiring sets used in vehicles, aircraft and ships with a $29.54 million decline.

The US was the biggest destination for Philippine exports of goods in May, accounting for $1.08 billion or 17 percent of the total.

The country’s imports amounted to $10.930 billion in May, down slightly from $10.933 billion in the same month a year ago.

Posting the biggest decline in imports value was the transport equipment commodity group, which went down by $348.54 million in May from a year ago.

Other food and live animals came in next with a $62.73 million decline in May from a year ago, followed by electronic products, which decreased $54.87 million year-on-year.

China remained the country’s biggest supplier of imported goods in May, accounting for $2.73 billion or 25 percent of the total.

Total external trade in goods of the country dipped 1.2 percent to $17.26 billion in May from $17.46 billion in the same month of 2023.