The Philippines experienced a significant shift in its trade landscape during November, witnessing a considerable reduction in its trade deficit. New data revealed a strengthening export sector, signaling a positive trend for the nation’s economy.
November’s trade-in-goods balance registered a shortfall of $3.51 billion, a remarkable 28.8% decrease compared to the $4.94 billion gap recorded in the same month the previous year. This improvement indicates a growing capacity to compete in the global market and a potential boost to domestic industries.
The shrinking deficit wasn’t just a year-over-year improvement; it also represented a month-on-month decline. The gap narrowed to a nine-month low, falling from a revised $4.19 billion in October, demonstrating consistent positive momentum.
In fact, the November deficit was the smallest seen since February, when the imbalance stood at $2.97 billion. This sustained reduction suggests underlying structural changes are taking effect, fostering a more balanced trade relationship.
Looking at the broader picture, the cumulative trade deficit for the first eleven months of the year – January to November – also showed improvement. It narrowed to $45.2 billion, a 9.3% decrease from the $50.18 billion recorded during the same period last year.
Despite these recent gains, the Philippines has consistently operated with a trade deficit for over a decade. The last time the country experienced a trade surplus was in May 2015, with a modest $64.95 million excess, highlighting the long-term challenge of achieving trade balance.
