Domestic trade in goods jumps by 23% in 2024 as economy picks up

Domestic trade in goods grew by 23.1% to PHP 1.31 trillion in 2024, reflecting the uptick in overall economic activity, analysts said.

According to the Philippine Statistics Authority’s (PSA) Commodity Flow in the Philippines report, the value of goods traded rose to PHP 1.31 trillion in 2024 from the revised PHP 1.07 trillion in 2023.

This was a turnaround from the 3.1% contraction in 2023.

By volume, domestic trade likewise rose by 8.4% to 30 million tons from the revised 27.66 million tons in 2023.

The PSA reported that the majority of the commodities that flowed within the country in terms of value were traded through water.

Domestic trade by value is the outflow value of commodities transported from the place of origin to the destination.

Philippine Chamber of Commerce and Industry (PCCI) Chairman George T. Barcelon attributed the increase in domestic trade in 2024 to the economy’s performance.

In 2024, the Philippine economy expanded by 5.6% from 5.5% a year earlier.

Mr. Barcelon said the improved domestic trade data reflect the government’s investments in infrastructure projects and increased foreign direct investments.

In 2024, seven out of 10 traded commodity groups monitored by the PSA grew by value.

Food and live animals, which accounted for the largest share of trade in terms of value at 35.6%, rose by 96.6% to PHP 466.65 billion in 2024. By volume, it climbed by 48.8% to 8.55 million tons.

The value of machinery and transport equipment fell by 15% to P308.23 billion in 2024, accounting for 23.5% of domestic trade. By volume, it declined by 46.5% to 2.89 million tons.

Manufactured goods rose by 12.5% to PHP 175.5 billion. In terms of volume, it grew by 15.6% to 3.95 million tons.

“Food items are still the primary driver of growth of domestic trade, especially as foreign exchange concerns and global supply-chain uncertainty make locally sourced food items more attractive,” Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc. said in an e-mail.

Mr. Erece also noted that the National Capital Region continues to be the primary hub for higher value-added items, particularly manufactured goods, contributing to the high value of outflows from the region.

Among regions, Metro Manila posted the largest value of traded commodities with total outflows amounting to PHP 451.41 billion for a trade surplus of PHP 225.11 billion.

The National Capital Region (NCR) accounted for 34.4% of the total value of domestic trade in 2024.

This was followed by Western Visayas with traded commodities reaching PHP 313.07 billion for a trade surplus of PHP 134.15 billion. The region accounted for 23.9% of domestic trade.

Central Visayas followed with PHP 135.02 billion, bringing the trade deficit to PHP 101.43 billion.

Meanwhile, in terms of favorable trade balance among the regions, NCR led the regions with PHP 225.11 billion. Western Visayas trailed with PHP 134.15 billion and Central Luzon with PHP 51.69 billion.

On the other hand, regions with the most unfavorable trade balances were Central Visayas (PHP 101.43-billion trade deficit), Calabarzon (PHP 93.69-billion trade deficit) and Caraga (PHP 83.27-billion trade deficit).

According to the PSA, the trade balance is the difference between the outflow value and inflow value.

Mr. Erece said low inflation, especially for food items, may have increased demand for locally sourced goods in the first quarter.

“The increasing international trade tensions and foreign exchange worries can also make local sources a viable alternative to imports,” Mr. Erece said in a Viber message.

He said the ongoing election season will likely boost domestic trade.

“The growth brought by the election season may materialize during the second quarter,” Mr. Erece said. — Abigail Marie P. Yraola