PHL IMPORTS DECLINE AS PURCHASES OF OIL, RAW MATERIALS DROP IN JANUARY 2013

MANILA—Lower volume and international prices for oil coupled with the drop in purchases of semi-processed raw materials resulted in a decline in imports in January 2013, according to the National Economic and Development Authority (NEDA).

“These caused the lower payments for mineral fuels and lubricants and raw materials and intermediate goods that reduced total import bill in January 2013,” said Socioeconomic Planning Secretary Arsenio M. Balisacan.

Merchandise imports went down by 8.0 percent to US$4.7 billion in January 2013 from the US$5.1 billion recorded during the same month last year.

Petroleum crude payments declined by 45.3 percent during the period on account of lower import volume and international price of Dubai crude, which fell by 45.5 percent and 2.0 percent year-on-year, respectively. These made the value of overseas purchases of mineral fuels and lubricants drop by 30.0 percent (US$924.9 million) for the period from US$1.3 billion in January 2012.

Likewise, semi-processed raw inputs decreased by 10.3 percent that pushed down imports  of raw materials and intermediate goods by 7.8 percent to US$1.8 billion in January 2013 from US$1.9 billion in the same period last year.

These inputs include materials/accessories for the manufacture of electrical equipment, which declined by 29.8 percent in January 2013.

“The drop in overseas purchases of materials/accessories for the manufacture of electrical equipment seems to indicate a possible sluggish export performance of electronic products in the first quarter of 2013,” said Balisacan, who is also NEDA Director-General.

With the imports performance, the trade-in goods deficit narrowed to US$713.9 million from US$1.0 billion in January 2012.

“However, higher imports of consumer goods and capital goods partially moderated the drop in imports during the period,” the Cabinet official said.

Imports for consumer goods grew by 19.5 percent year-on-year to US$622.4 million while capital goods reached US$1.4 billion (3.0%) in January 2013.

Higher inward shipments of passenger cars and motorized cycle (21.1%), home appliances (99.6%) and miscellaneous manufactures (7.8%) supported the growth in payments for durable consumer goods (22.3%).

Also, increased inward shipments of beverages and tobacco manufactures (115.9%), articles of apparel (40.0%), fruits and vegetables (18.7%) and, fish and fish preparations (29.8%), increased the payments for imported non-durable consumer products (16.8%).

“The higher spending for imported consumer products partly reflects the generally optimistic expectations of consumers, on the back of macroeconomic improvements recorded in the previous year,” said Balisacan.

Furthermore, the increase in import payments for power generating and specialized machines (12.2%), aircraft, ships and boats (50.6%) and land transportation equipment excluding passenger cars and motorized cycle (11.6%) buoyed the growth of payments for imported capital goods in January 2013.

“The increase in payments for imported capital goods was supported by continuously upbeat outlook on the macroeconomy, with the percentage of businesses with expansion plans increasing to 29.6% in the first quarter of 2013 from 28.8% in the same period in 2012,” he said.

As for the source of the country’s imports, the People’s Republic of China had the highest share of 13.1 percent of the total value in January 2013. The United States of America came next with a 10.8 percent share, followed by Japan (8.9%), the Republic of Korea (8.5%) and Taiwan (7.1%).

M.R. No. 2013-035                                                                             

26 March 2013