February 2024 Trade Gap Narrows as Exports Pose Fastest Growth in 16 Months
April 16, 2024
Latest data from the Philippine Statistics Authority posted a trade deficit of negative USD 3.65 billion in February 2024. Officials note that this is a 6 percent decline from the negative USD 3.88 billion trade gap in February 2023. The February 2024 trade deficit marked the slimmest gap since September 2023, attributed to the fastest pace of growth of exports in 16 months; and the growth of imports after two consecutive months of decline.
Export Statistics
Still led by a surge in electronic exports, the total value of Philippine export sales in February 2024 amounted to USD 5.91 billion, an increase of 15.7 percent from USD 5.10 billion in February 2023. According to ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa, “export jump was driven largely by the surge in electronics exports with the Philippines tracking the rebound in regional peers as demand for chips pick up.” Analysts note that the 15.7 percent jump in exports has been the quickest growth since the 20.6 percent export sales surge in October 2022.
Alongside electronics, the following commodity groups had the highest annual increases in exports value in February 2024:
| Commodity Groups | Exports Value | ||
| February 2023 | February 2024 | Difference | |
| 1. Electronic Products | 2,696.38 | 3,420.24 | 723.86 |
| 2. Other Mineral Products | 129.28 | 208.82 | 79.54 |
| 3. Coconut Oil (includes crude and refined) | 72.06 | 116.49 | 44.44 |
| 4. Chemicals | 130.85 | 169.04 | 38.19 |
| 5. Tuna (includes fresh, frozen, prepared, or preserved in airtight containers) | 28.51 | 49.83 | 21.32 |
In terms of the country’s top export partners in February 2024, exports to the United States of America (USA) remain to have the highest value at USD 947.83, or a 16 percent share in the country’s total exports in February 2024. The other export partners and their shares are listed below:
| Trading Partner | Exports Value | Percent Share to Total Exports |
| 1. USA | 947.83 | 16.0 |
| 2. Japan | 849.17 | 14.4 |
| 3. Hong Kong | 774.03 | 13.1 |
| 4. People’s Republic of China | 695.25 | 11.8 |
| 5. Thailand | 282.01 | 4.8 |
Import Statistics
The total value of imported goods also posted a 6.3 percent annual increase from USD 8.98 billion in February 2023 to USD 9.55 billion in February 2024. Metalliferous ores and metal scraps had the highest increase in the value of imports, with other commodity groups such as:
| Commodity Groups | Imports Value | ||
| February 2023 | February 2024 | Difference | |
| 1. Metalliferous Ores and Metal Scrap | 117.70 | 337.29 | 219.59 |
| 2. Cereals and Cereal Preparations | 233.99 | 371.22 | 137.23 |
| 3. Mineral Fuels, Lubricants, and Related Materials | 1,586.12 | 1,717.83 | 131.71 |
| 4. Iron and Steel | 280.88 | 378.71 | 97.84 |
| 5. Miscellaneous Manufactured Articles | 249.15 | 326.86 | 77.71 |
By trading partners, the top imported goods supplier of the country is still China at USD 2.18 billion, or 22.8 percent of the country’s total imports in February 2024. Aside from China, the top import suppliers also consist of the following countries:
| Trading Partner | Imports Value | Percent Share to Total Imports |
| 1. People’s Republic of China | USD 2.18 billion | 22.8 |
| 2. Japan | USD 845.23 million | 8.8 |
| 3. Republic of Korea | USD 719.90 million | 7.5 |
| 4. Indonesia | USD 664.57 million | 7.0 |
| 5. Thailand | USD 660.86 million | 6.9 |
Expert Opinion: February 2024 Trade Performance
Rizal Commercial Banking Corporation Chief Economist Michael Ricafort notes that the faster growth in exports than imports “may be partly due to the weaker peso exchange rate against the dollar since 2022 by about 11 percent that made exports more price competitive or cheaper from the point of view of international buyers, while making imports more expensive from the perspective of local buyers.”
Nevertheless, Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr. said that “overall trade did well in February 2024 as geopolitical tensions eased and exports registered growth.” Mr. Ortiz-Luiz expects the trend to continue as data come in for March 2024 trade performance.
