IMPORTS GROWTH RECOVERS IN MAY 2012 FROM 2-MONTH SLIDE

Rise in imports of mineral fuels and lubricants, capital and consumer goods trigger upturn

MANILA— The National Economic and Development Authority (NEDA) said that merchandise imports or the value of goods bought outside the country recovered in May 2012 due to the surge in inward shipments of mineral fuels and lubricants, capital goods, and consumer goods.

“This was a recovery from two consecutive months of year-on-year decline,” Socioeconomic Planning Secretary Arsenio M. Balisacan said.

The National Statistics Office (NSO) reported that imports in May 2012 posted a 10.1-percent growth or US$5.4 billion from US$4.9 billion in the same period last year.

The value of overseas purchases of mineral fuels and lubricants surged by 88.1 percent year-on-year to US$1.3 billion in May 2012 due to the increased volume that grew by 53.2 percent from the same period last year.

“Even as crude oil prices eased in the international market, the value of overseas purchases of mineral fuels and lubricants surged by 88.1 percent year-on-year to US$1.3 billion in May 2012 due to the increased volume that grew by 53.2 percent from the same period last year,” the Cabinet official added.

Also, imports of capital goods reached US$1.4 billion in May 2012, higher by 19.9 percent compared to US$1.2 billion in the same period last year.

The increase in import payments for telecommunication equipment and electrical machinery (23.0%), aircraft, ships and boats (94.6%), office and EDP machines (16.3%), land transportation equipment (35.6%), and power generating and specialized machines (7.9%) largely offset the lower import bill for photographic equipment and optical goods (-7.6%).

“The sustained growth in imports of capital goods was due to the broadly upbeat sentiments of businesses on the back of robust expansion and higher volume of production,” said Balisacan, who is also NEDA Director-General.

Furthermore, imports of consumer goods grew by 1.5 percent to US$660.4 million in May 2012 from US$650.5 million in May 201, mainly due to higher imports of durable goods, like passenger cars and motorized cycle (which increased by 81.9%).

Balisacan cited a report from the Chamber of Automotive Manufacturers of the Philippines Inc. stating that domestic sales of vehicles increased by 30.7 percent year-on-year in May 2012 with 14,265 units sold. He also noted the Association of Vehicle Importers and Distributors (AVID) report on an 11.0-percent increase in vehicle sales in the same period, reaching 2,255 units from 2,032 units a year ago. 

Meanwhile, cumulative import payments as of May 2012 amounted to US$25.7 billion, lower by 1.9 percent compared to US$26.1 billion in the same period last year. The trade-in-goods deficit in the first five months of this year narrowed to US$3.2 billion from US$5.4 billion in the same period a year ago, mainly due to better exports performance.

The United States of America (US) remains the biggest supplier of imported goods with 12.1-percent share in the total value of inward shipments in May 2012. Import items from the US consist mainly of materials for manufacture of electronics and telecommunication equipment and electrical machinery.

The Republic of China followed the US with an 11.1-percent share. Other major sources of imported goods include the Republic of Korea (10.5%), Japan (9.0%) and Taiwan (8.8%). The value of imported goods from other ASEAN members represented 25.0 percent of the country’s total merchandise imports in May 2012.

MR No. 2012-055

26 July 2012