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Balance of Trade: By. Rafael Luis Pmaonag

The document discusses the Philippines' balance of trade and trade relationships. It provides statistics on the Philippines' top trading partners for both exports and imports in 2019. The US, Japan, and China were the top export partners, while China, Indonesia, and South Korea had the highest trade deficits. Hong Kong and the US provided the largest trade surpluses. Electronics were the largest export, while the country saw an overall trade deficit of $42.6 billion for 2019, down from 2018.

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43 views25 pages

Balance of Trade: By. Rafael Luis Pmaonag

The document discusses the Philippines' balance of trade and trade relationships. It provides statistics on the Philippines' top trading partners for both exports and imports in 2019. The US, Japan, and China were the top export partners, while China, Indonesia, and South Korea had the highest trade deficits. Hong Kong and the US provided the largest trade surpluses. Electronics were the largest export, while the country saw an overall trade deficit of $42.6 billion for 2019, down from 2018.

Uploaded by

Marjon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Balance of Trade

by. Rafael luis Pmaonag


Balance of Trade
 Measures a country’s imports and
exports.
 Refers to the difference between a
country’s value of exports and its
imports.

Balance of Trade= Exports- Imports

A positive balance of trade is known as a


Trade Surplus.

A negative balance of trade is known as a


Trade Deficit.
Philippines Top
Trading Partners
1. Unites States
2. Japan
3. China
4. Hong Kong
5. Singapore
6. South Korea
7. Thailand
8. Germany
9. Netherlands
10. Taiwan
11. Malaysia
12. Vietnam
13. Indonesia
14. France
15. Mexico
Here are the
Philippines top 15
main foreign
export partners,
countries that
imported the most
Filipino shipments
by dollar value
during 2019.Also
shown is each
import country’s
percentage of total
Filipino exports.
United States of
America (USA)

US$ 11.5
BILLION
(16.3% of
total
Filipino
exports)
JAPAN

$10.6
BILLION
(15.1%)
CHINA

$9.6
BILLION
(13.7%)
HONG KONG

$ 9.6
BILLION
(13.7%)
SINGAPORE

$3.8
BILLION
(5.4%)
SOUTH KOREA

$3.2
BILLION
(4.6%)
THAILAND

$3
BILLION
(4.6%
GERMANY

$2.7
BILLION
(3.9%)
NETHERLANDS

$2.3
BILLION
(3.2%)
TAIWAN

$2.2
BILLION
(3.2%)
MALAYSIA

$1.8
BILLION
(2.6%)
VIETNAM

$1.3
BILLION
(1.8%)
INDONESIA

$821.6
MILLION
(1.2%)
FRANCE

$798.3
MILLION
(1.1%)
MEXICO

$670.8
MILLION
(1%)
TRADING WITH EU MEMBER COUNTRIES IS AT
9.6 PERCENT OF TOTAL TRADE
The country’s external trade in goods with the European Union (EU) member countries totaled to $8.13 billion or 9.6 percent share to the total
trade. Exports to EU reached $4.60 billion or 14.0 percent of the total export receipts, while imports were valued at $3.53 billion or a 6.8
percent share to total imports, resulting to a balance of trade in goods (BOT-G) surplus of $1.07 billion. Among the EU member countries,
Germany was the country’s top trading partner with a total trade of $2.35 billion or 28.9 percent of EU’s total trade. Revenue from exports to
Germany amounted to $1.44 billion while payment for imports was worth $908.71 million, reflecting a trade surplus of $532.33 million .

Major goods exported to the EU member countries in 2018 were: Electronic Products, $2.70 billion; Machinery and Transport Equipment,
$564.84 million; Coconut Oil, $265.35 million; Other Manufactured Goods, $182.15 million; and Tuna, $171.86 million.

Top five imported goods from the EU member countries were: Electronic Products, $620.73 million; Transport Equipment, $596.49 million;
Industrial Machinery and Equipment, $410.31 million; Medicinal and Pharmaceutical Products, $288.02 million; and Other Food and Live
Animals, $258.48 million .
Philippines export
and import statistics
The country’s total export sales in May
2019 was $6.16 billion, indicating an
increase of 1.0 percent, from the $6.09
billion total export sales in May 2018. This
was due to the increases in export sales of
the eight of the top 10 major export
commodities, namely, copper
concentrates (192.1%); ignition wiring
set and other wiring sets used in
vehicles, aircrafts and
ships (31.7%); fresh
bananas (28.6%); chemicals (20.1%); 
metal
components (14.0%); gold (8.3%); othe
r mineral products (7.0%);
and electronic products (6.2%). By
commodity group, export of electronic
products continued to be the country’s top
export with total earnings of $3.45 billion.
This amount, which accounted for 56.1
percent of the total exports’ revenue in
May 2019, rose by 6.2 percent from the
$3.25 billion export receipt in May
2018.  Components/devices
(semiconductors) accounted for the
biggest share of 40.5 percent among the
electronic products.  It posted an
increment of 4.5 percent, from $2.39
billion in May 2018 to $2.50 billion in May
2019.
DEFICIT
The Philippines racked up a -$42.6 billion trade deficit for 2019,
down -10.6% from -$47.6 billion in red ink one year earlier.

As defined by Investopedia, a country whose total value of all


imported goods is higher than its value of all exports is said to have
a negative trade balance or deficit. It would be unrealistic for any
exporting nation to expect across-the-board positive trade balances
with all its importing partners. Similarly, that export country doesn’t
necessarily post a negative trade balance with each individual partner
with which it exchanges exports and imports.

In 2019, the Philippines incurred the highest trade deficits at the


expense of the following countries.
China: US-$16.1 billion (country-specific trade deficit in 2019)
Indonesia: -$6.2 billion
South Korea: -$5.3 billion
Thailand: -$4.1 billion
Singapore: -$2.93 billion
Malaysia: -$2.91 billion
Taiwan: -$2.6 billion
Vietnam: -$2.4 billion
India: -$1.3 billion
Australia: -$1.1 billion
Among Philippines’ trading partners that cause the greatest negative
trade balances, Filipino deficits with Singapore (up 41.2%), Malaysia
(up 23.3%) and China (up 16.1%) grew at the fastest pace from
2018 to 2019.

These cash flow deficiencies clearly indicate competitive


disadvantages with the above countries, but also represent key
opportunities for the Philippines to develop country-specific strategies
to strengthen its overall position in international trade.
SURPLUS
Based on Investopedia definition of net importer, a country
whose total value of all imported goods is lower than its value of
all exports is said to have a positive trade balance or surplus.

The Philippines incurred the highest trade surpluses with the


following countries:

Hong Kong: US$5.9 billion (country-specific trade surplus in


2019)
United States: $3.2 billion
Netherlands: $1.6 billion
Mexico: $491 million
Czech Republic: $223.2 million
Hungary: $164.9 million
Poland: $86.5 million
Iran: $67.1 million
Canada: $63.3 million
Switzerland: $54.9 million

Among Philippines’ trading partners that generate the greatest


positive trade balances, Filipino surpluses with Czech Republic
(up 56.2%), United States (up 45.4%) and Iran (up 19.5%)
grew at the fastest pace from 2018 to 2019.

In addition, the Philippines transitioned from a -$48 million


deficit trading with Switzerland in 2018 to generate a $54.9
million surplus for 2019. Similarly, Filipino trade with Canada
went from -$237 million in red ink in 2018 to $63.3 million in
black ink during the latest reporting period.

These positive cashflow streams clearly indicate competitive


advantages with the above countries, but also represent key
opportunities for the Philippines to develop country-specific
strategies to optimize its overall position in international trade.
REFERENCES:
https://psa.gov.ph/content/highlights-philippine-export-and-import-st
atistics-may-2019

https://www.googleadservices.com/pagead/aclk?sa=L&ai=DChcSEwjzr
_D_0_rrAhXVbioKHZLPDvEYABAAGgJ0bQ&ohost=www.google.com&ci
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https://psa.gov.ph/content/highlights-foreign-trade-statistics-philippin
es-first-semester-2018

http://www.worldstopexports.com/philippines-top-import-partners/
Thank you po!!!!

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