Sri Lanka Trade Deficit Widens in July

The US trade deficit reached $78.8 billion in July, marking a two-year high and reflecting a 7.9% increase primarily due to rising imports as companies prepare for potential disruptions. In the Philippines, agricultural trade also saw a significant deficit, widening by 13.8% year-on-year to $3.07 billion in Q2 2024, with exports rising but imports increasing at a faster pace. Meanwhile, Sri Lanka's trade deficit expanded to $604 million in July, up from $367 million the previous year, driven by a 25% rise in imports as the economy normalizes. Despite rising imports, Sri Lanka's exports grew by 10.8%, indicating strong performance across all major categories. The cumulative trade deficits for the first seven months of 2024 in both the Philippines and Sri Lanka continued to trend upward, reflecting ongoing pressures in global trade dynamics.