PSA: Philippines trade gap widens to $5 billion in March 2022

The country’s trade deficit widened by double digits in March as the increase in imports continued to outpace the growth in exports, indicating a greater normalcy in external trade amid the pandemic.

Data released by the Philippine Statistics Authority (PSA) showed that the balance of trade in goods deficit amounted to $5 billion, up 81.4% from $2.76 billion in the same period in 2021.

A deficit indicates that the value of a country's imports exceeded export receipts, while a surplus indicates more export shipments than imports.

In a commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the wider trade gap in March was due to the further reopening of the economy toward greater normalcy, the pick up in global economic activities in recent months amid increased vaccination/booster doses.

He added that Russia's invasion/war with Ukraine since February 24, led to further increase in global oil/commodity prices that also partly bloated both the value of Philippine exports and imports.

Meanwhile, total external trade in goods—the sum of imports and exports—stood $19.35 billion, up 18.6% from $16.3 billion year-on-year,  of which 62.9% were imports while the remaining 37.1% were exports.

Total imports for March amounted to $12.17 billion while exports totaled $7.17 billion.

Imports grew 27.7% on the back of increases in all of the top 10 major commodity groups which was led by medicinal and pharmaceutical products with 152.5% annual increase, according to the PSA.

This was followed by mineral fuels, lubricants and related materials which rose by 148% annually; and cereals and cereal preparations, 35.9%, it said.

China remains as the country’s biggest source of imported goods valued at $2.13 billion or 17.5% of the total.

Completing the top major import trading partner-countries are Japan with $1.24 billion or 10.2% share to the total, Korea with $1.20 billion or 9.8% share, Indonesia with $1.04 billion or 8.5% contribution, and United States with $869.84 million or 7.1% share.

The country’s exports, meanwhile, rose by 5.9% on the back of growth in four out of 10 major commodity groups, namely coconut oil (63.9%), gold (40%), other mineral products (19.7%), and electronic products (8.1%).

China is also the Philippines major export destination with export value amounting to $1.18 billion or 16.5% of the total.

Completing the five major export trading partners are the US with $1.09 billion or 15.2%, Japan with $1.04 billion or 14.5%, Hong Kong with $921.27 million or 12.8% share, and Singapore with $423.67 million or 5.9% contribution.  —NB, GMA News