PHILIPPINE international trade performance further contracted in July as trade activity remains subdued in the country and in the rest of the world, the Philippine Statistics Authority (PSA) reported on Thursday.

Preliminary data by the PSA showed merchandise exports in July declined by 9.6% to $5.654 billion compared to a revised 12.5% decline in June and a 4.8% growth recorded in July 2019.

The July result marked the fifth straight month of decline for exports, as well as the slowest decline so far this year following double-digit declines that started in March.

Meanwhile, merchandise imports declined for the 15th consecutive month in July by 24.4% to $7.481 billion, worsening from the year-on-year declines of 23.1% in June and 0.9% in July last year.

The trade deficit in July stood at $1.827 billion, lower than the $3.641-billion gap in the same month last year. This was, however,  the biggest in four months, or since March’s shortfall of $2.368 billion.

The country’s total external trade in goods — the sum of export and import goods — was $13.134 billion in July, 18.6% less than the $16.145-billion total in the same month last year. So far, total trade amounted to $80.771 billion, 23.6% less than $105.725 billion in January-July 2019.

For the seven months to July, exports were down 16.4% to $34.135 billion, which is above the Development Budget Coordination Committee’s (DBCC) revised projection of a 16% fall for the year.

Meanwhile, the import bill declined by 28.1% to $46.636 billion on a cumulative basis against the DBCC’s revised target of an 18% contraction for 2020.

Year to date, trade balance amounted to a $12.501-billion deficit, narrower than the $24.066-billion trade gap in 2019’s comparable seven months. – Lourdes O. Pilar

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