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Philippines’ trade deficit widened during the month of July as exports tumbled against a backdrop of sluggish global economic recovery. The decline in exports was due to the decrease in demand from traditional markets such as Japan, China, Hong Kong, and the United States.
The Philippine balance of trade registered a deficit of USD2.053 billion in July, as imports continued to outpace exports, data released by the Philippine Statistics Authority (PSA) showed Friday. The trade deficit compares with USD1.475 billion in July 2015.
In a separate statement, National Economic Development Authority (NEDA) attributed the decline in merchandise trade to the continued drop in exports on slow global economic recovery.
Guian Angelo Dumalagan, market economist at the Land Bank of the Philippines, told GMA News Online the decline in exports was alarming because "all major economic blocs showed declines, suggesting persistent weakness in global demand."
Exports amounted to USD4.673 billion, down 13.0 percent from USD5.371 billion a year earlier, while imports reached USD6.726 billion, down 1.7 percent from USD6.846 billion in the same comparable period.
The decline in imports, meanwhile, was a result of lower costs of raw materials and intermediate goods, mineral fuel and lubricants.
