The country's total external trade in goods increased by 4.5% in July to $17.37 billion from $16.62 billion in the same period of the previous year, according to the Philippine Statistics Authority (PSA).
In June 2024 and July 2023, total external trade in goods registered annual decreases of 11.1% and 10.0%, respectively. Export sales slightly increased to $6.249 billion in July from $6.246 billion in July last year.
"Of the total amount in July, 64% were imported goods, while the remaining 36% were exported goods," the PSA added.
Copper concentrates recorded the highest increase in exports in July, followed by other manufactured goods, coconut oil, machinery and transport equipment, and other mineral products.
The PSA reported that electronic products remained the country's top exports by commodity group, with earnings amounting to $3.25 billion.
By major trading partner, the United States had the highest export value, amounting to $1.06 billion, followed by Japan, the People's Republic of China, Hong Kong, and the Republic of Korea.
Imports, meanwhile, amounted to $11.12 billion, up by 7.2% from the $10.37 billion in July last year.
"In July 2024, the commodity group with the highest annual increment in the value of imported goods was electronic products, with $268.32 million. This was followed by iron and steel, which increased by $194.40 million, and industrial machinery and equipment with an annual increase of $92.31 million," the PSA said.
The People's Republic of China was the biggest supplier of imported goods, valued at $3.08 billion. Other significant sources of imports were Indonesia, Japan, the Republic of Korea, and the United States.
The PSA also noted that the balance of trade in goods, or the difference between the value of exports and imports, amounted to $4.87 billion, up 18% from $4.1 billion in July 2023.
In a Viber message, Rizal Commercial Banking Corporation chief economist Michael Ricafort said the wider trade deficit during the month reflects the faster growth of imports amid the further recovery of the economy.
"More businesses and industries are moving towards or even exceeding pre-pandemic performance levels. The stronger peso exchange rate made imports cheaper from the perspective of local buyers, but a stronger peso made exports more expensive from the viewpoint of international buyers," he explained.
Ricafort added that further cuts in the Bangko Sentral ng Pilipinas and Federal Reserve rates in the coming months would help reduce borrowing costs, spurring global investments, businesses, and other economic activities, which would boost global trade and overall economic growth.
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