China has been the principal source of Pakistan's trade deficit
. In FY15, the trade deficit
with China was $8.05 billion, which made up 36.31% of Pakistan's total trade deficit
He said that the government also missed the trade deficit
reduction target by $5.8 billion, although the gap between exports and imports shrank by over 15 percent.
The reduction in trade deficit
would help in controlling current account deficit of the country, which had touched historic $18 billion last year.
Mechanical machinery and equipment were also a large contributor to the overall trade deficit
with the EU, worth $2.3 billion in the March 2019 year.
However, the National Economic and Development Authority (Neda) said hope springs eternal for the Philippines as certain developments, most notably the conclusion of the Regional Comprehensive Economic Partnership (RCEP) agreement this year, will help the country boost its exports and narrow its trade deficit
Particularly galling for the Trump administration is the increase in the trade deficit
with China, which rose 12 percent to hit a new record at $419 billion last year despite punishing tariffs levied on that country's exports to the U.S.
Last year's trade deficit
paid for smartphones, kitchen appliances, clothing, auto parts and a whole range of goods that were made more affordable because of China's lower manufacturing costs.
On a month-on-month basis (MoM), trade deficit
posted an increase of 4.1% to $2.5 billion compared to $2.4 billion in December last year driven by a rise in imports MoM to $2.5 billion in January.
The wider trade deficit
resulted in a ballooning current account deficit as more dollars were being spent for importation.
In 2003, for example, when the country was on the cusp of emerging from a near crippling collapse of growth, the trade deficit
came in at $361 million.
On year-on-year basis, the services trade deficit
also shrunk by 40.33 percent as the imports fell by 23.18 percent while the exports recorded a nominal decrease of 0.23 percent during November 2018 as compared to same month of the year 2017.
"We think the trade deficit
in the Philippines will continue to expand over the coming year, putting further downward pressure on the peso," said the firm.