INQUIRER FILE PHOTO
The value of domestic trade in goods fell by 14.9 percent in the second quarter, data from the Philippine Statistics Authority (PSA) said on Wednesday.
According to the PSA’s final Commodity Flow in the Philippines report, the value of trade in domestic goods decreased to P182.62 billion from P445.16 billion in the previous quarter.
READ: Food, live animals dominated P390-B local trades in Q1
The volume of trade in the second quarter fell to 4.10 million tons, down by 38.2 percent.
Domestic trade by value is the outflow value of commodities transported from the place of origin to the destination.
Commodity flow includes all goods transported by water, air, and rail, with shipping accounting for the bulk of the commodities.
“The decline in domestic trade in the Philippines was primarily due to economic slowdown, inflation, supply chain disruptions, and regional disparities,” Robert Dan Roces, chief economist at Security Bank said.
In July, inflation accelerated to 4.4 percent from 3.7 percent in June, fastest growth in nine months or since the 4.9 percent logged in October 2023. This marked the first time that the inflation breached the central bank’s 2 to 4 percent target range for the year.
READ: July inflation accelerates to 4.4% – PSA
Roces expects significant macroeconomic implications which include reduced consumer spending, lower economic activity, and potential job losses, once the trend remains.
The National Capital Region had the largest trade balance in the April-to-June period amounting to P50.75 billion, followed by Eastern Visayas with P13.84 billion and Central Luzon with P10.21 billion.
Metro Manila posted the highest trade value at P66.78 billion, followed by Eastern Visayas with P23.59 billion and Northern Mindanao with P19.22 billion.
The trade balance is the difference between the outflow value and inflow value