PH total external trade in goods up 4.5% in July

Manila: The country's total external trade in goods went up by 4.5 percent in July this year, the Philippine Statistics Authority (PSA) said. Data released on Tuesday showed that the total external trade in goods reached USD17.37 billion, up from last year's USD16.62 billion. Of the total amount, 64 percent were imported goods, while the remaining 36 percent were exported goods. PSA data showed that export sales slightly went up to USD6.249 billion in July from USD6.246 billion in July last year. Copper concentrates recorded the highest increase in exports in July followed by other manufactured goods, coconut oil, machinery and transport equipment, and other mineral products. The PSA said that by commodity group, electronic products remained the country's top exports with earnings amounting to USD3.25 billion. By major trading partner, the United States comprised the highest export value amounting to USD1.06 billion, followed by Japan, People's Republic of China, Hongkong, and Republic of Korea. Import s, meanwhile, amounted to USD11.12 billion, higher by 7.2 percent from the USD10.37 billion in July last year. "In July 2024, the commodity group with the highest annual increment in the value of imported goods was electronic products with USD268.32 million. This was followed by iron and steel, which increased by USD194.40 million, and industrial machinery and equipment with an annual increase of USD92.31 million," the PSA said. The People's Republic of China was the biggest supplier of imported goods valued at USD3.08 billion. Other biggest sources of imports were Indonesia, Japan, Republic of Korea, and the United States. The PSA, meanwhile, said the balance of trade in goods or the difference between the value of exports and imports amounted to USD4.87 billion, up by 18 percent from the USD4.1 billion in July 2023. In a Viber message, Rizal Commercial Banking Corporation chief economist Michael Ricafort said the wider trade deficit during the month reflects the faster growth of imports amid the furthe r recovery of the economy. "More businesses and industries move towards or even exceeded pre-pandemic performance levels and also the stronger peso exchange rate that made imports cheaper from the point of view of local buyers, but stronger peso made exports more expensive from the point of view of international buyers," he said. Ricafort said that for the coming months, further cuts on the Bangko Sentral ng Pilipinas and Fed rates would further reduce borrowing costs that will help spur global investments, business, and other economic activities and will help boost global trade and overall economic growth. Source: Philippines News agency