Imports rise to 3-month high in May

MANILA, Philippines – Heightened demand for capital and  consumer goods pushed imports to grow at the fastest pace in three months, the Philippine Statistics Authority (PSA) reported yesterday.

The PSA said imports rose 39.3 percent to $6.74 billion in May, from $4.83 billion in the same period last year.

The National Economic and Development Authority (NEDA) said the sustained increase in imports shows favorable economic conditions for the country amid weakness in the global economy.

“The bullish performance of imports is a clear signal that our domestic economic conditions remain robust despite the weak global economy. With its current upward trend, we expect investments and consumption to drive growth for the rest of the year,” said Socioeconomic Planning Secretary and NEDA director general Ernesto M. Pernia.

He said among 11 selected Asian countries, only the Philippines registered growth in imports during the month while all others declined.

Pernia said the country must take advantage of this economic momentum to bridge the country’s infrastructure gap.

“With the sluggish import activities in the region, we must focus on fasttracking the country’s infrastructure development to support the growth of our economy and improve our absorptive capacity for investments,” he said.

In May, growth were recorded in nine major imported commodity groups, most of which are classified as capital and consumer goods.

These include transport equipment, power generating and specialized machinery, industrial machinery and equipment, plastics in primary  and  non-primary forms, telecommunication equipment and electrical machinery, miscellaneous manufactured articles, electronic products, other food and live animals, and  iron and steel.

Payments for inbound shipments of capital goods – used for manufacturing – practically doubled to $2.17 billion in May from $1.08 billion in the same month last year, continuing on its double-digit growth path for the ninth consecutive month and the 16th consecutive month of growth.

Purchases of consumer goods, valued at $1.20 billion in  May,  went up 47.2 percent from $817.98 million in May 2015, driven by higher demand for passenger cars and motorcycles.

Pernia said the high demand for cars and motorcycles serves both as an indicator of an energetic consumption trend and a potential source of growth if car manufacturers in the country can manufacture more parts and complete models.

“This is consistent with the findings of AmBisyon Natin 2040, which listed car ownership as among the aspirations of the Filipino people. But infrastructure, especially roads, must keep up. At the same time, public transport systems must be improved to expand people’s transport options, while we foster economic development in the countryside. Since these strategies take time to implement, we need everyone’s full cooperation towards efficient traffic management and strict enforcement of regulations,” he added.

Cumulative imports in the five months to May this year amounted to $31.89 billion, up 18.2 percent from $26.98 billion in the same period last year.

In terms of destination, China remained the country’s biggest source of imports, comprising 20.4 percent of total import bill in May. Payments were recorded at $1.37 billion, an increase of 65.7 percent from $828.66 million in May 2015.  

The Philippines also more than doubled its imports from Japan due to the growing demand for power-generating machines, telecommunication equipment and electrical machinery, and other mineral fuels and lubricants.