Trade deficit widens 28% in October

MANILA, Philippines — The balance of trade swung to a higher 28 percent deficit in October as imports continued to outpace exports, the Philippine Statistics Authority (PSA) reported.

Based on data from the PSA, total external trade in goods grew by 10.4 percent in October to $13.58 billion, from $12.30 billion registered in the previous year.

Total imports increased 13.1 percent to $8.21 billion from $7.26 billion the previous year while total exports rose by a slower 6.6 percent to $5.37 billion from $5.04 billion last year. This, however, marked the 11th consecutive month of positive growth in exports.

Thus, the trade deficit amounted to $2.84 billion in October 2017, higher than the $2.22 billion deficit in October 2016.

“We are encouraged by the performance of Philippine trade in recent months, especially with the consistent positive performance of exports. Cooperation and trade initiatives are integral to sustaining these gains,” Socioeconomic Planning Secretary Ernesto Pernia said.

“For 2018, we are looking at improved performances in exports of agricultural products and semiconductors, which continue to comprise a huge portion of Philippine exports,” he said.

This follows the expected rise in global prices of agricultural exports and World Semiconductor Trade Statistics’ expected seven-percent growth in global sales.

Pernia noted that these gains and positive outlook would be accompanied by initiatives such as ASEAN Seamless Trade Facilitation Indicators (ASTFI) that could help in reducing trade transaction costs by 10 percent by 2020.

The ASEAN-Hong Kong, China Free Trade Agreement (AHKFTA) and ASEAN–HKC Investment Agreement (AHKIA) signed last month will also increase and facilitate trade in goods and services within the region.

The AHKFTA broadens market access, promotes trade confidence and cooperation while AHKIA covers protection, promotion and facilitation of investment.

“Against this backdrop, Philippine exports will likely remain in the positive territory and should pick up due to higher demand during the holiday season,” Pernia added.