Trade deficit narrows in August

MANILA, Philippines — The country’s trade deficit narrowed by 31.5 percent in August from the same month last year as exports rose while imports declined, according to the Philippine Statistics Authority (PSA).

Preliminary data released by the PSA yesterday showed the balance of trade in goods or the difference between the value of exports and imports amounted to a $4.13-billion deficit in August, lower than the $6.03-billion shortfall in the same month in 2022.

The trade gap in August is also down from July’s trade deficit of $4.2 billion.

Total merchandise export sales of the country reached $6.70 billion in August, up by 4.2 percent from the $6.43 billion in the same month last year.

Electronic products continued to be the country’s top merchandise export in August with total earnings of $3.88 billion during the month, 6.1 percent higher than the $3.65 billion in the same month in the previous year.

Aside from electronic products, other commodity groups with the biggest annual increase in export value in August were cathodes and sections of cathodes of refined copper as it went up by $127.92 million, and gold, which rose by $78.24 million.

The US was the top destination of Philippine exports in August as it accounted for $1.10 billion or 16.4 percent of the total.

Total imported goods by the Philippines, meanwhile, declined by 13.1 percent to $10.83 billion in August from $12.46 billion in the same month last year.

The electronic products commodity group posted the biggest annual drop in imports value at $643.72 million.

This was followed by iron and steel, which declined by $258.84 million, and mineral fuels, lubricants and related materials with an annual decrease of $135.13 million.

China remained the country’s largest source of imported goods, which amounted to $2.43 billion or 22.4 percent of the total value in August.

In the January to August period, the country’s trade deficit amounted to $36.31 billion, narrower than the $41.86 billion in the same period last year.

Both exports and imports decreased in the eight-month period.

In particular, exports declined by 6.6 percent to $47.81 billion in the January to August period from $51.18 billion in the same period last year.

Imports slid by 9.6 percent to $84.12 billion in the first eight months.