Berths 6 and 7 of the Manila International Container Terminal. (Philippine Ports Authority website)
MANILA, Philippines — The growth of Philippine exports cooled in July but remained solid, buoyed by firm demand for Filipino products ahead of looming US tariffs, helping trim the country’s foreign trade deficit at the start of the third quarter.
Latest data from the Philippine Statistics Authority (PSA) showed Filipino exporters sold $7.34 billion worth of goods during the month, representing a 17.3-percent growth from a year earlier.
This marked a deceleration from the 26.9-percent expansion seen in June, albeit still one of the strongest clips this year. A closer look at the data showed sales of semiconductors, the country’s top export product, surged by 24.5 percent to $2.95 billion.
In the first seven months, exports climbed nearly 14 percent to $48.62 billion, defying the Marcos administration’s forecast of a 2-percent decline for the year.
READ: Philippine June export growth at 14-month high
Still, Filipinos imported $4.04 billion more than they exported in July. Even so, the strong export performance helped narrow the trade shortfall by 17 percent. In the first seven months, the trade deficit amounted to $28.46 billion, smaller by 4.91 percent.
John Paolo Rivera, a senior research fellow at state-run think tank Philippine Institute for Development Studies (PIDS), said the latest data reflected continued frontloading ahead of higher US tariffs.
Subdued imports
Washington began imposing a 19 percent tariff on Philippine imports on Aug. 1, but trade officials in Manila said they were seeking exemptions for certain goods, including farm products and electronics.
“Exporters are trying to take advantage of existing trade terms before new barriers come into force,” Rivera said.
READ: Why can’t we export more?
Meanwhile, imports rose 2.3 percent to $11.38 billion in July, a sharp slowdown from the 15.7-percent growth recorded in June. This brought the year-to-date bill to $77.09 billion, up 6.14 percent.
“The slower growth in imports suggests a possible softening in domestic demand and capital goods purchases, which could reflect caution among firms due to global uncertainty and tight monetary conditions,” Rivera said.
Your subscription could not be saved. Please try again.
Your subscription has been successful.
“If this trend persists, it may signal subdued private sector investment or consumer spending in the short term,” he added. /rwd
