January trade deficit reaches $3.5 billion

March 11, 2020

The Philippines' trade deficit rose to $3.5 billion in January from $2.48 billion in December 2018, the Philippine Statistics Authority (PSA) said Wednesday.

On a year-ago basis, the trade deficit was lower than $3.92 billion, PSA added. 

Exports reached $5.79 billion and imports, $9.29 billion in January from the previous month's $5.74 billion in exports and $8.22 billion in imports.

''January’s trade performance is largely due to a rebound in exports, which grew by 9.7 percent, supported by strong expansions from manufactured goods, agro-based, mineral products, and forest products,'' said the National Economic and Development Authority ( NEDA) on Wednesday.

''The Philippines overtook all neighboring Asian countries in export growth in January 2020. Coming from a strong growth in December 2019, Philippine exports to major markets, particularly to Korea, Hong Kong, USA, Thailand, China and Japan, recorded positive growth,'' it added.

''Imports, meanwhile, broke its nine-month decline by registering 1.0 percent growth on account of higher inward shipments of mineral fuels and lubricant as well as capital goods,'' NEDA added.

But NEDA said there is a looming slowdown in global demand partly due to the spread of COVID-19.

“The government should further intensify its trade efforts to minimize the impact from reduced external demand and manage timely recovery. This is while we are preventing the spread of coronavirus COVID-19 with continued vigilance and implementation of health measures,” said Socioeconomic Planning Secretary Ernesto Pernia.

He added that relevant government agencies should consider measures that would streamline procedures and facilitate trade, as well as reduce transactions costs.

“In consultation with the private sector, the government should ease implementation of some regulations that will allow firms to manage costs and provide financing or loan restructuring to micro and small enterprises whose operations may have already been affected,” said Pernia.DMS