Trade gap widens to $3.55B in July
The trade deficit widened to $3.55 billion in July, the government reported on Tuesday, as double-digit imports growth outpaced an exports recovery.
Total external trade in goods hit $15.25 billion, the Philippine Statistics Authority (PSA) said, up 17.5 percent from a year earlier.
Total exports grew by 0.3 percent to $5.85 billion while imports surged 31.6 percent to $9.40 billion.
July’s $3.55-billion trade gap was wider than the $3.35 billion recorded in June and the $1.31 billion a year earlier.
Electronics remained the country’s top export for the month, accounting for $3.28 billion in sales—up 5.2 percent year on year—and accounting for 56 percent of total exports.
While exports turned positive, the National Economic and Development Authority (NEDA) said government action was needed to boost the sector.
“As the global trade situation becomes less encouraging, improving the
overall climate for export development becomes all the more
indispensable,” Socioeconomic Planning Secretary Ernesto Pernia said in a statement.
”Thus, the government needs to fast-track the crafting of the Ease of
Doing Business Act’s implementing rules and regulations,” he added.
The NEDA said global trade pointed to a continued slowdown in the third quarter given a trade war between the United States and China.
“Trade war fears have weighed on business sentiment, and we now see softer global activity,” Pernia said.
”With a resolution unlikely in the short term, the dispute is expected
to dampen growth in both economies and drag down growth in the wider
global economy,” he added.
The government, the Cabinet official said, should promote forward and backward linkages to support the exports sector, adding that high shipping and cargo handling costs also need to be addressed.
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