June trade deficit narrows further to $4.30 billion

The country’s trade-in-goods deficit widened year on year in June but posted the narrowest level in three months as exports saw a double-digit decline and imports fell following a month of growth.

Preliminary data from the Philippine Statistics Authority (PSA) showed the trade-in-goods balance — the difference between exports and imports — amounted to a $4.30 billion deficit in June, narrowing from the $4.71-billion shortfall recorded in the previous month, but still wider than the $3.94 deficit last year.

This was the narrowest trade gap in three months or since the $3.35 deficit in March.

READ: May trade deficit narrows to $4.60 billion – PSA

Total sales of local goods declined by 17.3 percent year on year to $5.57 billion in June, falling further from 3.1 percent and 0.2 percent contractions recorded in the previous months and July 2023, respectively.

By value, export receipt in June was the lowest in more than a year or since $4.92 billion in April 2023.

Meanwhile the country’s merchandise imports fell by 7.5 percent year on year to $9.87 billion in June. This was a reversal from the previous month’s 1 percent growth. The contraction, however, was still lower than the 14.8 percent decline in June 2023.

Import bill in June was the lowest level in three months or since the $9.57 billion in March.

The Development Budget Coordination Committee projects 5 percent and 2 percent growth in exports and imports, respectively, for this year.