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Exports

Philippine Trade Deficit Narrows in September Amid Strong Export Growth

Strategic Insights

— 2 min read

The Philippines posted a smaller trade deficit in September 2024 compared to the same month last year, thanks to a significant increase in exports. According to the Philippine Statistics Authority (PSA), the country's trade deficit narrowed by 15% to $4.35 billion in September, down from $5.10 billion in the same month last year. This marked the third consecutive month of narrowing trade deficit, indicating a positive contribution to the country's GDP growth in the third quarter. The country's export sales rose by 16% to $7.25 billion in September, driven by a rebound in demand for electronics and manufactured goods, favorable global commodity prices, and some volume recovery ahead of the year-end holiday rush.

Key Takeaways:

  • The Philippine trade deficit narrowed by 15% to $4.35 billion in September 2024, down from $5.10 billion in the same month last year.
  • The country's export sales rose by 16% to $7.25 billion in September, driven by a rebound in demand for electronics and manufactured goods.
  • Electronic products remained the top exports, with sales amounting to $4.02 billion, 28% higher than $3.15 billion in the same month last year.
  • The United States reclaimed the top spot as the country's largest export market, accounting for $1.11 billion or 15.3% of total exports in September.
  • The country's total exports from January to September climbed by 13% to $63.02 billion from $55.71 billion in the same period in 2024.
  • Imported goods increased by a tepid 2% to $11.60 billion in September, with electronic products posting the highest imports value amounting to $3.05 billion.
  • China remained the biggest source of the country's imports, accounting for $3.29 billion or 28% of the total in September.
  • Goods imported from January to September rose by 5% to $100.19 billion from $95.14 billion in the same period last year.
  • The Philippines may continue to benefit from increased exports if global demand holds up and supply chain disruptions remain limited, but heightened tariff risk, weaker external demand, or input-supply constraints could temper gains.

Statistics:

  • Trade deficit narrowed by 15% to $4.35 billion in September 2024.
  • Export sales rose by 16% to $7.25 billion in September 2024.
  • Electronic products accounted for $4.02 billion of total exports in September, 28% higher than $3.15 billion in the same month last year.
  • United States accounted for 15.3% of total exports in September, with exports valued at $1.11 billion.
  • Total exports from January to September climbed by 13% to $63.02 billion from $55.71 billion in the same period in 2024.
  • Imported goods increased by 2% to $11.60 billion in September, with electronic products accounting for $3.05 billion.
  • China accounted for 28% of total imports in September, with imports valued at $3.29 billion.
  • Goods imported from January to September rose by 5% to $100.19 billion from $95.14 billion in the same period last year.

Sources:

  • Philippine Statistics Authority (PSA)
  • Chinabank Research
  • John Paolo Rivera, senior research fellow, Philippine Institute for Development Studies
  • George Barcelon, chairman, Philippine Chamber of Commerce and Industry
  • Money Talks, One News

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