Imports sustain strong growth in April

MANILA, Philippines – Imports registered a robust 29.2 percent growth in April on the back of double-digit growth in capital goods, raw materials and consumer goods, the Philippine Statistics Authority (PSA) reported.

The National Economic and Development Authority (NEDA) said the rise in imports indicates strong economic performance in the second quarter.

The country’s import bill amounted to $6.5 billion during the month, up from $5.1 billion recorded in the same period last year.

PSA attributed this to increased imports across nine commodity groups led by a 91 percent increase in imports of metal products. The other eight are: industrial machinery and equipment, telecommunication equipment and electrical machinery, electronic products, iron and steel, miscellaneous manufactured articles, plastics in primary and non-primary forms, transport equipment, and other food and live animals.

Total imports from January to April amounted to $25.126 billion, up from $22.142 billion in the same period last year.

In terms of sourcing, China remained as the country’s largest source of imports valued at $1.309 billion, up 68.8 percent from April 2015.

By economic bloc, East Asia— which comprises China, Hong Kong, Japan, Macau, Mongolia, North Korea, South Korea and Taiwan—was the biggest source of the country’s imports in April 2016 as it accounted for 47 percent of total imports valued at $3.069 billion. 

Other prominent sources of imports are Japan, US, Thailand, Singapore, Indonesia and Malaysia .

 “The continued strength of merchandise imports, buoyed by purchases of capital goods and durable goods, hints of a robust economic performance in the second quarter. In particular, the double-digit growth of capital goods since September 2015 points towards sustained business sector confidence while robust imports of durable consumer goods point towards strong consumer confidence,” said Socioeconomic Planning Secretary Emmanuel F. Esguerra, also the director general of NEDA.

In April, inbound shipments of capital goods registered double-digit growth for the eighth consecutive month, growing 56.7 percent to $2.2 billion. This was due to stronger demand for telecommunication equipment and electrical machinery, power generating machines, and land transport equipment.

Imports of raw materials and intermediate goods also increased 28.9 percent to $2.5 billion.

 “The trend is expected to continue for the rest of the year especially given that the incoming administration has vowed to continue infrastructure spending. Also, a renewed focus on the manufacturing sector could further boost demand for capital goods,” Esguerra said.