PHL IMPORTS UP BY 4.3 PERCENT IN OCTOBER 2012

MANILA— Total merchandise imports grew by 4.3 percent to US$5.2 billion in October 2012 from US$5.0 billion in the same month last year due to higher purchases of raw materials and intermediate goods, consumer and capital goods, according to the National Economic and Development Authority (NEDA).

Inward shipments of major commodities such as raw materials and intermediate goods increased by 13.0 percent, consumer goods by 9.8 percent, and capital goods by 1.9 percent year-on-year in October 2012.

“The modest improvement in imports performance during the period reflected the generally more upbeat sentiments of both business and consumers,” said Socioeconomic Planning Secretary Arsenio M. Balisacan.

The growth for raw materials and intermediate goods was due to annual gains from both unprocessed (107.4%) and semi-processed (1.2%) raw inputs. Unprocessed raw materials were supported by higher payments for metalliferous ores (326.4%), wheat (89.6%), synthetic fibers (141.4%), corn (390.6%) and unmilled cereals (48.2%). 

Meanwhile, imports growth of semi-processed raw materials was supported by the strong performance of materials/accessories for electrical equipment (37.7%), non-metallic mineral manufactures (43.9%), animal feeds (8.4%), fertilizers excluding urea (14.2%), urea (8.0%), and embroideries (11.5%).

Also, imports of capital goods went up as increased payments were recorded for land transportation equipment (29.6%), aircraft, ships and boats (21.3%), telecommunication equipment and electrical machinery (1.3%), photographic equipment and optical goods (11.0%) and power generating and specialized machines (0.4%).

“The higher importation of capital goods, raw materials and intermediate goods was partly due to the anticipated increase in volume of production on account of improved orders and projects as well as the expansion of businesses and new product lines.  These expansion plans, on the other hand, are backed by the country’s strong macroeconomic fundamentals,” the Cabinet official said.

For the imports growth of consumer goods, this was due to higher payments for both durable and non-durable consumer products which posted 2.5 percent and 18.9 percent annual increases, respectively.  These increases were reported

for passenger cars and motorized cycle (16.8%), rice (613.3%), fish products (66.5%) and fruits and vegetables (17.3%).

For the first ten months of 2012, merchandise imports grew by 0.9 percent to US$51.3 billion from US$50.8 in the same period in 2011. Thus, the trade-in-goods deficit narrowed to US$6.8 billion in January to October 2012 from US$9.3 billion a year ago.

As for the market source, the United States of America was the top supplier of imported goods, with 11.5 percent share in the total value of inward shipments in October 2012.

Following the US in terms of market share were the People’s Republic of China (11.3%), Japan (9.90%), Taiwan (9.85%) and the Republic of Korea (6.8%).

M.R. No. 2012-089

28 December 2012