The country’s trade deficit narrowed in February as exports recorded a faster growth versus imports.
According to a report published by the Philippine Statistics Authority (PSA) yesterday, the balance of trade in goods in February 2024 amounted to -$3.65 billion, indicating a trade deficit with an annual decrease of six percent.
Total export sales in February amounted to $5.91 billion, recording a year-on-year increase of 15.7 percent from the $5.1 billion total exports in the same month of the previous year.
The commodity group with the highest annual increase in the value of exports in February was electronic products with $723.86 million.
This was followed by other mineral products with a year-on-year increase of $79.54 million, and coconut oil with $44.44 million.
The year-to-date annual total value of exports amounted to $11.84 billion, posting a growth of 12.3 percent from the total export value of $10.55 billion in January to February 2023.
“The faster year-on-year growth in exports… may be partly due to the weaker peso exchange rate versus the US dollar… that made exports more price competitive from the point of view of international buyers; while making imports more expensive from the perspective of local buyers,” Michael Ricafort, Rizal Commercial Banking Corp. chief economist, said.
Meanwhile, total imported goods in February 2024 amounted to $9.55 billion, up 6.3 percent from the $8.98 billion import value in the same month of the previous year.
The commodity group with the highest annual increase in the value of imported goods in February was metalliferous ores and metal scrap with $219.59 million.
This was followed by cereals and cereal preparations, which grew by $137.23 million, and mineral fuels, lubricants and related materials with a year-on-year jump of $131.71 million.
The year-to-date annual total import value amounted to $19.88 billion. This represents a decline of 0.5 percent from the year-to-date annual total import value of $19.98 billion in 2023.
“The year-on-year decline in imports may have to do partly with the decline in the prices of imported crude oil to among two-year lows recently and lower world prices of other imported commodities,” Ricafort said.
The country’s total external trade in goods for the month of February amounted to $15.46 billion, which indicates an increase of 9.7 percent from the $14.09 billion total external trade in the same period of the previous year.
