Trade gap widened to $2.75B in May as exports, imports post double-digit growth
External trade jumped double-digit in May following an increase in construction activities in line with the government’s plan to ramp up infrastructure development even as manufacturing slowed that month, the government reported yesterday.
The Philippine Statistics Authority said merchandise exports last May rose 13.7 percent to $5.49 billion from $4.83 billion a year ago, the sixth straight month of double-digit growth.
The value of imported goods that entered the country in May, meanwhile, increased at a faster 16.6 percent to $8.24 billion from $7.07 billion last year, reversing the 0.1-percent decline a month ago.
As the value of imports outpaced that of exports, the country’s balance of trade in goods remained at a deficit of $2.75 billion last May, the widest to date.
“The deficit is caused by imports of capital equipment and intermediate goods for production. It’s actually a positive thing when import growth is caused by capital and intermediate goods. In fact, that has been the trend—a bigger part of imports now is accounted for by capital imports,” Socioeconomic Planning Secretary Ernesto M. Pernia told reporters late Monday.
Pernia, who heads the state planning agency National Economic and Development Authority, said he expected the deficit to be sustained until yearend as there would be more capital goods imports to be used as equipment for upcoming major construction projects.
As for the increase in two-way trade in May, Pernia said in a statement yesterday that the country’s trade growth was consistent with the global pick-up.
“We are striding forward with world trade performers and we intend to match this growth with sound macroeconomic policies,” Pernia said, adding that the government expected Philippine exports to increase by about $100 million annually in the next five years.
In May alone, total trade rose 15.4 percent year-on-year to $13.7 billion. —BEN O. DE VERA
