Domestic trade value down in Q4

MANILA, Philippines — Goods traded within the country declined by 25 percent in the fourth quarter of 2024 from the previous year amid the series of typhoons that hit the country.

Preliminary data released by the Philippine Statistics Authority (PSA) showed that domestic trade value went down to P246.22 billion from October to December 2024 compared to P326.56 billion in the same period last year.

The PSA said 99.9 percent of the commodities that flowed within the country in the fourth quarter of 2024 were traded through water, while the rest were traded through air.

In terms of volume, domestic trade also decreased by 26 percent to 6.23 million tons from 8.41 million tons in the same quarter of 2023.

“The double-digit decline in domestic trade amounts and volumes in the fourth quarter of 2024 may have been largely attributed to the series of storms or typhoons or flooding that hit the country in the latter part of 2024 that disrupted trade, business and other economic activities, especially in hard hit areas amid reduced number of workdays amid work suspension, as well as suspension of various shipping or airline routes in view of the inclement weather,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said in an email.

He also said the ban on Philippine Offshore Gaming Operations may have also weighed on some domestic trading activities.

“As a result, there could be accumulated or pent up demand by the first quarter of 2025 to make up for some of the delays in domestic trade in fourth quarter of 2024, as well as preparation related to the midterm elections on May 12, 2025, especially during the national and local campaign period and also some rush ahead of the election ban,” he said.

By commodity group, food and live animals had the highest value of traded commodities with P72.07 billion or 29.3 percent share in the fourth quarter of 2024.

Machinery and transport equipment came in next with P47.48 billion (19.3 percent) and manufactured goods classified chiefly by material at P45.15 billion (18.3 percent).

Mineral fuels, lubricants and related materials had the biggest share in terms of domestic trade volume in the fourth quarter of 2024 with 1.48 million tons or 23.8 percent of the total.

This was followed by food and live animals with 1.44 million tons (23.1 percent) and commodities and transactions not classified elsewhere with 0.99 million tons (16 percent).

By region, the National Capital Region (NCR) had the highest value of traded goods with P131.31 billion or 53.3 percent of the total value in the fourth quarter last year.