Nov imports fall 10.8%

MANILA, Philippines - The country’s imports fell 10.8 percent in November compared to the same month a year ago, amid lower payments for capital goods as well as mineral fuels and lubricants.

The Philippine Statistics Authority (PSA) said, in a report released yesterday, the country’s total imported goods for November 2014 amounted to $4.989 billion, down from the $5.593 billion recorded during the comparable period in 2013.

Socioeconomic planning chief Arsenio Balisacan attributed the year-on-year decline in imports to the weak performance of capital goods as well as declining global oil prices.

“The negative performance of capital goods imports was largely due to the decrease in imports of aircraft, ships and boats, which partly reflects the trough period of the massive re-fleeting program of major airlines, as well as to the reduction in the import value of telecommunication equipment and electrical machinery,” Balisacan said.

“Declining global oil prices also brought down the value of inward shipments of mineral fuels during the month,” he added.

The PSA noted that China remained the country’s biggest source of imports with its 16.2 percent share valued at $808.53 million in November 2014, a 20.6 percent increase from the $670.46 million it imported in November 2013.

While the country’s imports dropped year-on-year in November, cumulative imports for the January to November period reached $58.549 billion, which posted a 2.8 percent uptick from the $56.965 billion recorded in the same period in 2013.

Given the prevailing low oil price environment, Balisacan said the country is expected to purchase more oil for the last month of 2014 and for this year.

“Imports of consumer goods will likewise remain positive for the remaining month of the year, mainly supported by the uptick in domestic consumption primarily of food,” he said.

The low oil price environment is not only seen favorable to imports, but also to consumer activity through relief from hikes in fares, utility costs, and other consumer items, as well as to industrial activity given reductions in operating costs.

“This is also an opportune time to implement programs to encourage backward linkages among domestic industries. Programs that improve productivity through the use of technology and that facilitate access to credit, such as those of the Departments of Trade and Industry and Science and Technology,” Balisacan said.