Domestic trade down 14.9% in Q2

MANILA, Philippines —  Goods traded within the country registered a double-digit decline in the second quarter amid high prices and interest rates.

Data from the Philippine Statistics Authority showed domestic trade dropped by 14.9 percent to P182.62 billion in the second quarter from P214.72 billion in the same period last year.

The PSA said almost all or 99.8 percent of the commodities that flowed within the country in the second quarter of this year were traded through water, while the rest were through air.

In terms of volume, the PSA said domestic trade went down by 38.2 percent to 4.10 million tons in the April to June period from 6.64 million tons in the same period of 2023.

“The year-on-year decline in the domestic trade volume and in pesos may have to do with higher prices or inflation that partly weighed on demand, weaker peso exchange rate especially earlier this year that added to importation costs or prices and overall inflation and still relatively higher interest rates or borrowing costs or financing costs that somewhat slowed down global and local investments, trade and other business or economic activities, including domestic trade,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said in an email.

Machinery and transport equipment had the biggest share in domestic trade value with P61.23 billion or 33.5 percent of the total in the second quarter.

Food and live animals had the second largest share with P44.86 billion (24.6 percent) followed by manufactured goods classified chiefly by material at P23.18 billion (12.7 percent).

When it comes to domestic trade volume, food and live animals accounted for the biggest share in the second quarter with 1.01 million tons or 24.7 percent.

Mineral fuels, lubricants and related materials came in next with 23.3 percent and machinery and transport equipment with 12.8 percent.