Philippine trade gap shrinks in November as exports continue to impress
MANILA, Philippines — The Philippines’ trade gap shrank in November last year as exports continued to improve amid a smaller imports bill.
Trade deficit, which occurs when the country’s imports bill outgrows export sales, stood at $3.68 billion in November, 21.9% smaller compared with a year ago, the Philippine Statistics Authority reported Tuesday.
But the latest figure was larger compared to the $3.31 billion gap recorded in October, data showed.
Overall, the country’s external trade inched up 3.6% year-on-year to $17.89 billion in November. This however was slower compared to the 12.5% annual growth in October.
Data broken down showed exports advanced 13.2% year-on-year to $7.1 billion in November. Shipments of electronic products, the country’s top export, grew 22.9% annually to $4.57 billion.
Imports were slashed 1.9% compared to a year ago to $10.78 billion in November. This was due to lower costs to ship electronic products and transport equipment into the country.
Sought for comment, Domini Velasquez, chief economist at China Banking Corp., projected pressures on the peso would ease if the trade deficit continued to narrow.
Velasquez pointed out that declining imports of capital goods were worrying. The contraction, which has persisted for two straight months, showed lower infrastructure and investment spending.
At the same time, risks remain despite China, a major trading partner, reopening its economy after scrapping its zero-Covid policy.
“If this trend continues, we expect the pressure on the Philippine peso to ease,” she said.
“A reopening in China will increase demand for Philippine goods but may also increase competition for similar export items. A global slowdown is also underway,” the commentary added.
- Latest
- Trending
