Philippine trade deficit narrows 48.9% in May

The Philippines's balance of trade in goods posted a narrower deficit in May as decline in exports is slower than the drop in imports during the period, the Philippine Statistics Authority (PSA) reported Friday.

Data from the PSA showed the country’s trade gap stood at $1.865 billion, down 48.9% from a $3.649-billion deficit in May 2019.

The narrower deficit resulted from slower exports decline of 38.7% to $3.99 billion compared with import’s 40.6% plunge to $5.85 billion.

Balance of trade in goods is the difference between the value of export and import. A deficit indicates that the value of a country’s imports exceeded export receipts, while a surplus indicates more export shipments than imports.

The annual drop in May was the third month that total exports was consecutively declining, according to the PSA.

Of the top ten major commodity groups in terms of exported value, eight had annual decline which was led by ignition wiring set and other wiring sets used in vehicles, aircrafts and ships (-70.4%); other manufactured goods (-50.6%); and chemicals (-37.2%), the PSA said.

For imports, the decline was attributed to the decreases in nine out of the top 10 major import commodities which was led by mineral fuels, lubricants and related materials (-80.0%); transport  equipment  (-65.6%);  and  iron and steel (-61.0%).

Meanwhile, the country’s total external trade in goods — the total value of import and export receipts —in May amounted to $9.84 billion, down of 38.7% year-on-year.

The decline in external trade, however, is slower than April’s annual drop rate of 59.5%.

Of the total external trade, 59.5% were comprised of imported goods and the rest or 40.5% were exported goods —AOL, GMA News