The Philippines' trade deficit narrowed in November 2023 as both imports and exports declined. Economists suggest weak economic activity and potential global trade impacts from US protectionist policies may be influencing the trend.
The country's trade deficit narrowed in November last year compared to a month earlier as both imports and exports fell, preliminary data from the Philippine Statistics Authority (PSA) showed on Thursday. At $4.77 billion, the shortfall was lower than October's $5.78 billion but was largely at the same level as a year ago. Total trade in goods grew to $16.14 billion in November, down from the month- and year-earlier $18.16 billion and $17.23 billion. Exports were lower at $5.
69 billion compared to $6.18 billion a month ago and $6.23 billion a year earlier. Imports also fell to $10.46 billion from $11.97 billion in October and $11.0 billion in November 2023. Imports accounted for 64.8 percent of total external trade last month, with the rest taken up by outbound shipments. Year to date, exports edged down to $67.55 billion from $67.83 billion in the comparable 2023 period. Imports, on the other hand, grew to $117.51 billion in January-November from $116.25 billion. Electronics remained the country's top export, accounting for $2.79 billion or 48.9 percent of total exports in November. Manufactured goods and machinery and transport equipment followed at $420 million (7.4 percent) and $245.61 million (4.3 percent), respectively. The United States was the biggest buyer of Philippine-made goods during the month, having purchased $969.09 million or 17.0 percent of total exports. Rounding out the top five were Japan ($916.12 million or 16.1 percent), China ($786.35 million or 13.8 percent), Hong Kong ($600.24 million or 10.5 percent) and Singapore ($288.11 million or 5.1 percent). Electronic products were also the Philippines' biggest import for November at $2.46 billion or 23.5 percent of the total. Mineral fuels, lubricants and related materials followed at $1.31 billion (12.5 percent) and transport equipment at $819.93 million (7.8 percent) was third. China was the country's biggest supplier, providing $2.82 billion worth of goods or 27.0 percent of total inbound shipments. It was followed by Indonesia ($877.77 million or 8.4 percent), Japan ($827.75 million or 7.9 percent), Korea ($774.55 million or 7.4 percent) and the USA ($621.3 million or 5.9 percent). Commenting on the latest merchandise trade data, Pantheon Macroeconomics economist Miguel Chanco said the narrower trade deficit reflected weak economic activity. 'The main concern still is the general underperformance and stagnation of capital goods imports and what this says about investment activity in the economy,' he added. Rizal Commercial Banking Corp. chief economist Michael Ricafort said lower interest rates from the central bank and potential Fed rate cuts could boost trade and investment. However, potential protectionist policies under US President-elect Donald Trump could slow global trade and economic growth, he added
TRADE DEFICIT PHILIPPINES IMPORTS EXPORTS ECONOMIC ACTIVITY PROTECTIONISM
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Philippine Trade Deficit Narrows in NovemberThe Philippines recorded a narrowed trade deficit in November 2024, as export contractions outpaced import declines.
Read more »
Trump Threatens EU with Tariffs Over Trade DeficitUS president-elect Donald Trump threatened the European Union with tariffs unless it reduces its trade deficit with the US by purchasing more American oil and gas.
Read more »
Philippine Balance of Payments Posts Widest Deficit in Over Two YearsThe Philippine balance of payments (BOP) recorded a wider deficit in November 2024, marking the largest gap in over two years. This deficit was attributed to the national government's foreign currency withdrawals for debt obligations and expenditures, as well as the BSP's net foreign exchange operations.
Read more »
Philippine Tobacco Tax Review Urged to Curb Revenue Losses and Illicit TradeRenowned economist Dr. Arthur Laffer advises the Philippine government to review excise tax levels on tobacco to prevent further revenue declines and the growth of illicit trade. Laffer argues that continuous annual tax rate increases have driven tobacco prices to a prohibitive range, leading consumers to purchase cheaper, untaxed products. He suggests realigning tobacco tax rates closer to the revenue-maximizing rate.
Read more »
Philippines Posts $2.3 Billion Balance of Payments Deficit in November 2024The Philippines recorded a $2.3 billion balance of payments (BOP) deficit in November 2024, a significant jump from the $216 million deficit in the same month last year. The Bangko Sentral ng Pilipinas (BSP) attributed the deficit to the national government's foreign currency withdrawals to settle debt obligations and expenditures, as well as the BSP's net foreign exchange operations. Despite the November deficit, the cumulative BOP position from January to November 2024 still showed a surplus of $2.1 billion. Lower net receipts from trade in services and government net foreign borrowing contributed to the decline in the cumulative surplus. However, this was partially offset by continued net inflows from personal remittances, foreign portfolio investments, and direct investments. The BOP position resulted in a decrease in the gross international reserves (GIR) to $108.5 billion as of end-November 2024, from $111.1 billion at the end of October 2024. Despite the decrease, the GIR still provides a more than adequate external liquidity buffer equivalent to 7.7 months' worth of imports and payments of services and primary income.
Read more »
Budget balance swings to deficit in NovemberTHE government's budget balance reversed to a deficit in November as spending outpaced revenue, the Bureau of the Treasury reported on Thursday.
Read more »