PHL trade deficit more than doubles at $3.35B in June

 

The Philippines incurred a wider trade deficit in June as exports continued to grow slower against higher imports, the Philippine Statistics Authority (PSA) reported on Wednesday.

The country’s balance of trade in goods expanded to a $3.35-billion deficit in June, compared with $1.59 billion a year earlier, data released by the statistics office showed.

“It was expected because of the massive infrastructure buildup of the government. Also, the weakening of the peso raised import values higher,” said Cid Terosa, dean of the School of Economics of the University of Asia and the Pacific.

Exports declined by 0.1 percent to $5.700 billion from $5.704 billion, while imports soared by 24.2 percent to $9.05 billion from $7.29 billion.

Shipments of mineral products, chemicals, ignition wiring sets, and fresh bananas to foreign buyers declined.

 

Imports were led by iron and steel, cereals, electronic products, mineral fuels, transport equipment, and miscellaneous manufactured articles.

Also registering increases were imports of plastics, industrial machinery and equipment, telecommunication equipment, and other food and live animals.

The total external trade in goods amounted to $14.75 billion, up 13.5 percent from $12.99 billion year-on-year.

Terosa said the trade gap could widen further as imports are expected to increase in the last quarter of the year. “Because of the ‘ber’ months and the aggressive infra program of the government.”

Under the Build, Build, Build program, the government plans to spend over P8 trillion until 2022, largely funded by tax revenue. —VDS, GMA News