THE country’s trade deficit widened in September to $5.15 billion, 10.3 percent higher than the $4.67-billion deficit recorded during the same month last year, data from the Philippine Statistics Authority (PSA) released on Friday showed.
PSA said September’s deficit was also higher than the nearly $4.29 billion recorded last month.
Total exports amounted to $9.87 billion in September, accounting for 39.7 percent of the total external trade during the month.
This was 35.6 percent higher than the $7.28 billion during the same month last year and was also higher than the $9.14 billion in August.
The September export figures were also the highest recorded since the series began in 1991.
Imports, meanwhile, amounted to $15.03 billion, making up 60.3 percent of the country’s total external trade during the month.
It was 25.7 percent higher than the $11.95 billion a year earlier and is also higher than the $13.44 billion in August.
The figure was also the highest recorded since the series began in 1991.
This brought the total external trade to $24.90 billion, 29.5 percent higher than the $19.24 billion during the same period last year.
This was the highest recorded monthly total external trade since the series began in 1991.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the export growth was largely due to the surge in global demand for electronics, particularly artificial intelligence-related products, as well as the weaker peso, which made Philippine exports more competitive from the perspective of international buyers.
As for imports, he said the growth comes despite a weaker peso which made imports more expensive for local buyers. He also cited some front-loading before prices go up further.
Demand for electronics up
Year-to-date exports increased by 17.2 percent to $73.95 billion from $63.08 billion, while imports increased by 20.3 percent to $121.11 billion from $100.65 billion during the same period last year.
These were also the highest recorded year-to-date values since the series began in 1991.
Electronic products remained the country’s top export by value at $6.92 billion, accounting for 70.1 percent of total exports. This was followed by other mineral products ($333.93 million, 3.4 percent), and machinery and transport equipment ($316.54 million, 3.2 percent).
Manufactured goods still accounted for the largest share of total exports among major categories, at $8.48 billion, or 85.9 percent. Next were mineral products ($693.49 million, 7.0 percent) and total agro-based products ($527.24 million, 5.3 percent).
The United States of America was the top destination for Philippine exports, accounting for $2.63 billion, or a 26.6-percent share, of the country’s total exports in September.
Other countries in the top five were Hong Kong ($1.55 billion, 15.7 percent), the People’s Republic of China ($1.12 billion, 11.3 percent), Vietnam ($785.15 million, 8.0 percent) and Japan ($619.17 million, 6.3 percent).
APEC takes biggest share
By economic bloc, the majority of the country’s exports went to Asia-Pacific Economic Cooperation (APEC) countries, totaling $8.65 billion, or 87.6 percent of the country’s total exports. Next were East Asia ($3.96 billion, 40.2 percent) and the Regional Comprehensive Economic Partnership (RCEP) ($3.82 billion, 38.7 percent).
East Asia contributed the highest export value in terms of geographic region at $3.96 billion, or 40.2 percent. This was followed by Northern America ($2.69 billion, 27.3 percent) and Southeast Asia ($1.79 billion, 18.1 percent).
As for imports, electronic products were also the country’s top imports in terms of value in September at $5.80 billion, or 38.6 percent of the country’s total imports. Mineral fuels, lubricants and related materials followed at $1.97 billion (13.1 percent), along with transport equipment at $855.14 million (5.7 percent).
Raw materials and intermediate goods topped imports among major types of goods, accounting for $6.71 billion, or 44.6 percent. Next were capital goods ($3.93 billion, 26.1 percent) and consumer goods ($2.36 billion, 15.7 percent).
The Republic of Korea was the country’s top source of imported goods at $3.92 billion, or a 26.1-percent share. Other major suppliers include the People’s Republic of China ($3.36 billion, 22.3 percent), Indonesia ($994.43 million, 6.6 percent), Japan ($952.13 million, 6.3 percent) and the USA ($744.66 million, 5.0 percent).
APEC countries were the country’s top supplier of imported goods by economic bloc, totaling $13.30 billion, or 88.5 percent. Next were RCEP ($11.91 billion, 79.2 percent) and East Asia ($8.85 billion, 58.9 percent).
Among geographic regions, East Asia contributed the highest import value at $8.85 billion, or 58.9 percent. This was followed by Southeast Asia ($3.45 billion, 22.9 percent) and Northern America ($801.99 million, 5.3 percent).
