June imports up 15.4% to $6.9 billion

CEBU, Philippines - Philippine imports continued to rise in June 2016, although imports of electronic goods, the country's top import item, saw a 15.8 percent drop during the month.

The Philippine Statistics Authority reported yesterday June imports totaled $6.9 billion, up by 15.4 percent from $5.9 billion recorded in the same period last year. 

"The increase was due to the positive growth rates of eight out of the top ten major imported commodities for the month led by telecommunication equipment and electrical machinery (91.5 percent)," the PSA said.

“This performance shows the strength of domestic demand in the country particularly in consumption and investment, as reflected by the latest real GDP growth of 7 percent in the second quarter,” Socioeconomic Planning Secretary Ernesto M. Pernia said in a statement yesterday.

He said the positive import growth bodes well for the economy as it signals robust investment activity in industry and services moving forward.

In the first half of 2016, cumulative imports amounted to $38.7 billion, rising by 17.7 percent from $32.9 billion in the same period last year.

This triggered the country to post a trade deficit of $2.1 billion in the six-month period, meaning the country was importing more than exporting.

Electronic products, the country's top import item, decreased 15.8 percent to $1.7 billion from $2 billion last year. Electronics accounted for 24.8 percent of the total import bill in June.

Imports from China, the country's biggest import source, rose 45.8 percent to $1.3 billion from $882.9 million in June last year.

Imports from other key trading partners — Japan and Thailand — also posted positive growth. Although imports from the US and Taiwan saw a decrease of 25.5 percent and 16.3 percent, respectively.

Pernia said the trend of imports growth is seen to remain positive although at a lower pace due to relatively weak outlook for electronic exports, which will affect the importation of electrical equipment.

"However, strong construction activity will continue to boost spending on durable equipment and capital goods,”  Pernia said.

He noted it remains important to support growth enhancing measures that will sustain consumption and investment.  (FREEMAN)