Hanoi (VNA) – The Philippines recorded a trade deficit of 4.5 billion USD in March, the highest level in six months, amid rising import costs driven by tensions in the Middle East, according to data released on April 29 by the Philippine Statistics Authority.
However, the pace of increase in the deficit remained almost unchanged, edging up just 0.1% year-on-year. The development reflects mixed movements in exports and imports against the backdrop of volatile global energy prices.
Exports surged 20.4% year-on-year to 6.78 billion USD in March, marking the highest level since the Philippine Statistics Authority began compiling trade data in 1991. Meanwhile, imports rose 12.3% to 11.29 billion USD, also reaching a record high.
Compared with February, the trade gap widened by more than 12% from a revised 4 billion USD. Analysts had earlier forecast a further expansion of the deficit in March and the following months, as energy prices and shipping costs continue to rise amid instability in the Middle East.
The prolonged conflict in the region has disrupted key shipping routes and pushed up global oil prices and logistics costs, directly affecting energy-importing economies such as Philippines. Experts believe that pressure on the country’s trade balance may persist in the near term, as import costs for fuel, production inputs, and essential goods remain elevated while global demand has yet to fully recover.
The Philippine government is closely monitoring energy price developments and seeking to diversify supply sources to mitigate risks to its import-dependent economy./.
