Imports growth slows to 4.1% in August

MANILA, Philippines - Growth in goods imported by the country slowed sharply in August due to lower purchases of imported raw materials, lubricants and mineral fuels, the Philippine Statistics Authority said yesterday.

Preliminary data showed the country’s total imports rose by 4.1 percent to P$6.08 billion in August, weaker than the five percent expansion in the same month last year.  It was also slower than the 16.9 percent growth recorded in July.

This brings the country’s eight-month total imports to $43.65 billion, up 1.5 percent from $43.05 billion a year earlier.

Imports of mineral fuels, lubricants and related materials declined by 49.7 percent to $635.9 million.

According to the PSA, the country’s balance of trade registered a $953.89 million deficit, higher than the $373.28 million deficit incurred in the same period a year ago.

 “Merchandise imports growth is expected to maintain its growth momentum until the end of the year. This outcome supports our view that domestic consumption will be the main driver of economic growth, at least in the short term, while the manufacturing sector is seen to remain vibrant,” said Economic Planning Secretary and NEDA Director-General Arsenio M. Balisacan. 

Balisacan said however that the onset of the election season in early 2016 is also seen as driver of import growth,  particularly manufactured goods such as paper and similar products, textile yarn, fabrics and made-up articles.

Electronic inbound shipments in August accounted for 33.7 percent of the total import bill with value amounting to $2.05 billion or an increase of 68.5 percent year on year.

Components and devices (semiconductors) had the biggest share at 27.9 percent among electronic products, representing an increase of 91.6 percent to $1.7 billion.

“Imports of raw materials and intermediate goods as well as consumer goods will provide the boost going forward. Ramped-up importation for these commodity sub-sectors suggests an upward tick in the coming months as the manufacturing sector is expected to increase production in anticipation of increased demand during the holiday season,” Balisacan said.

The People’s Republic of China remains the country’s biggest source of imports at 17.9-percent share in August. Import bill reached $1.089 billion, up 24.9 percent from  $871.29 million a year earlier.

Minerals fuels, lubricants and related materials placed  second, accounting for a 10.5 percent share to total imports worth around $635.87 million.  This marked a 49.7 percent decline from the previous year’s $1.26 billion.

Transport equipment was the country’s   third   top import for the month, accounting for $525.67 million.  This was 17.8 percent lower than the $639.26 million recorded a year ago.

Imports of industrial machinery and equipment ranked fourth with a 5.9 percent share and reported value of $357.79 million.

Other food and live animals, which ranked with a 3.7 percent share, recorded $227.67 million worth of imports or 10.3 percent higher year on year.

Rounding up the list of the top 10 imports for August 2015 were:  miscellaneous manufactured articles valued at $179.86 million; iron and steel, $154.49 million; cereals and cereal preparations, $143.27 million; medicinal and pharmaceutical products, $140.03 million; and plastics in primary and non– primary forms, $135.35 million.

Total payment for the country’s top 10 imports for August  alone reached $4.55 billion or 74.8 percent of the total import bill.

The US was the second biggest source of imports in August amounting to $792.01 million (13 percent share of total imports), followed by Taiwan’s $528.72 billion (8.7 percent share), Japan’s $434.18 million (7.1 percent share), and Singapore $399.1 million (6.6 percent share).

Other major sources of imports for August include Republic of Korea ($349 million), Thailand ($348.8 million), Malaysia ($317.9 million), Indonesia ($303.1 million), and Germany ($221.64 million).