Imports growth weakened to 1.4% in June; deficit now $2.46-B

THE COUNTRY’S import bill grew for the eighth month in a row but at a weaker 1.4 percent year on year to $4.17 billion, the National Statistics Office said Wednesday.

NSO documents showed that imports performance in June followed sixth straight months of two-digit increases, although this was the eight consecutive month of growth.

Total external trade—the combined value of outbound and inbound goods—in the first semester reached $49.9 billion, or an increase of 32.7 percent from a year ago.

This kept the trade balance in favor of the rest of the world with the Philippines incurring a deficit of $2.46 billion, which was better than the $3.16-billion shortfall registered in the same period of 2009.

Compared to May imports, which were valued at $4.75 billion, shipments in June represented a decrease of 12.4 percent.

A strong inflow of goods from abroad, which indicates a similar movement in exports, is considered a good sign especially for the Philippines, which relies heavily on foreign supplies of electronics inputs for its biggest source of export revenues.

NSO figures showed that electronics products accounted for 34.7 percent of total imports in June, with the value rising 4.3 percent year on year to $1.44 billion.

Semiconductor devices and parts made up about a quarter of all electronics shipments, racking up $1.11 billion in bills.

The operation of modern electronic devices such as computers, cell phones, transistors, solar panels, diodes and integrated circuits depend on semiconductor materials. Silicon is widely used in the production of commercial semiconductors.

Electronics imports in June increased 5.5 percent from $1.05 billion in May.

June shipments of mineral fuels, lubricants and related materials, which represented the second-biggest subgroup in terms of value, fell 16.4 percent to $714.6 million.

The country’s third-biggest import for the month—transport equipment—increased 29 percent to $250 million. Fourth were industrial machinery and equipment, payments for which increased by half to $199.71 million. In fifth place were cereals, which fell 45.4 percent to $189.82 million.

Rounding up the top 10 were chemicals, up 30.4 percent to $121.25 million; plastics, up 61.8 percent to $94.71 million; iron and steel, up 24.9 percent to $92.94 million; telecommunication equipment and electrical machinery, up 41.5 percent to $77.62 million, and medicinal and pharmaceutical products, up 3.3 percent to $62.35 million.

The 10 products accounted for a combined bill of $3.25 billion or four-fifths of total import payments in June.

Japan climbed to the top spot as a source of imports for the month, accounting for 12.8 percent of total cargoes or $534.71 million, an increase of 9.9 percent year on year.

Singapore, mainly a source of petroleum products, fell back to second place with a 10.4-percent share valued at $432.42 million or 47.3 percent higher than the year-ago bill.

The United States went back to the top three with a tenth of all inbound cargoes valued at $457.29 million or 8.5-percent lower than last year’s bill. –Ronnel Domingo, Philippine Daily Inquirer