In January 2024, Philippine trade experienced a robust growth of 9.1% year-on-year, reaching a total of $17.82 billion. This growth was driven primarily by an increase in imports and a noticeable recovery in exports, as revealed by government data released on Wednesday. The trade deficit, however, saw a significant increase of 16.9%, widening to $5.09 billion. Exports, which are a key component of the country's trade, rose by 6.3% to $6.36 billion.
Electronics played a pivotal role in this growth, accounting for an impressive $3.37 billion, or 53% of the total shipments. Other manufactured goods and coconut oil also contributed positively to this upward trend. The United States emerged as the leading buyer of Philippine exports, purchasing goods worth $1.13 billion.
Following the US, Japan and Hong Kong were notable trading partners, showcasing the Philippines' expanding market reach. On the other hand, imports surged by 10.8%, totaling $11.45 billion. Electronics remained a dominant sector within imports as well, making up $2.51 billion or nearly 22% of total purchases.
Additionally, the demand for mineral fuels and transport equipment indicated a positive trend in the country's consumption patterns. China continued to dominate the supply side, remaining the biggest supplier to the Philippines with total imports valued at $3.31 billion. The Philippines has been actively deepening its trade relations with regional partners, particularly Japan and Hong Kong.
A notable visit from a Japanese business delegation to Manila in February 2024 underscores this initiative, as they sought to explore new opportunities for investment and supply chain development. Meanwhile, Hong Kong solidified its position as the Philippines' fifth-largest trading partner and the third-largest export market for the year 2024, with total goods trade between the two regions reaching an impressive $13.9 billion..