THE country's trade deficit narrowed in February as both imports and exports fell, the Philippine Statistics Authority (PSA) reported on Tuesday.

At $3.88 billion, the deficit improved from January's $5.73 billion and the year-earlier $3.98 billion, PSA data showed.

Total trade in goods fell to $14.03 billion, from $16.39 billion and $16.24 billion a month and a year earlier, respectively, with imports totaling $8.95 billion and exports at $5.08 billion.

Viewed another way, imports comprised 63.8 percent of total trade in goods with exports accounting for the rest.

February's import and export figures were both lower month on month ($10.18 billion and $6.2 billion in January, respectively) and year on year ($10.99 billion and $5.25 billion in February 2022).

Year to date, the trade deficit ballooned to $9.61 billion from the previous month's $8.49 billion and February 2022's $5.73 billion.

Exports as of end-February totaled $10.33 billion, down 15.6 percent from the comparable 2022 period. Imports, at $19.94 billion, were down 3.9 percent from January-February 2022's $20.74 billion.

The country's top export, electronics, fell by 22.2 percent to $2.68 billion in February from January's $3.44 billion. Its share of total exports also fell to 52.7 percent from 55.5 percent.

As of end-February, exports of electronic products contracted by 20.6 percent to $5.51 billion from $6.95 billion in the same period last year.

Japan was the biggest buyer of Philippine-made goods in February, purchasing a total of $822.65 million or a 16.2 percent of the total.

Rounding out the top five were the United States of America ($756.00 million or 14.9 percent), the People's Republic of China ($611.59 million or 12.0 percent), Hong Kong, ($526.86 million or 10.4 percent) and Singapore ($310.60 million or 6.1 percent).

Electronic products were also the Philippines' biggest import for the month at $2.13 billion or 23.8 percent of the total but down 14.3 percent from January's $2.49 billion.

Year to date, electronics imports were down 13.4 percent to $4.58 billion from January-February 2022's $5.29 billion.

A little over a fifth, 21.6 percent or $1.93 billion, of the country's total imports came from China. Following were Indonesia ($917.76 million or 10.2 percent), Japan ($788.35 million or 8.8 percent), the US ($648.81 million or 7.2 percent) and South Korea ($593.22 million or 6.6 percent).

Domini Velasquez, chief economist at China Banking Corp., said that February was 'weaker for both exports and imports as demand remains under pressure from a weaker global economy.'

The trade deficit, while the smallest in four months, 'may reverse course in the coming months as the trade outlook remains weak,' she added.

'The gloomy semiconductor outlook and the recent increase in global oil prices will risk widening the trade deficit, contrary to our earlier expectations of a narrower trade gap.'

A decline in imports of materials for manufacturing, meanwhile, suggest weaker industry sentiment and higher interest rates could have also discouraged business expansion and purchases.

'Hopefully, pent-up demand from China's pandemic reopening and better-than-expected performances in advanced economies will help buoy exports in the second half of the year,' Velasquez said.

'Although we are expecting China's reopening to spur consumption and boost global trade, we may only see its impact on domestic trade toward the end of the year,' she added.

WITH A REPORT FROM NIÑA MYKA PAULINE ARCEO