Imports drop 3.6% in June

MANILA, Philippines – The country’s imports declined for a second month in June due to lower purchases of electronics components used to assemble the country’s biggest export, the Philippine Statistics Authority (PSA) reported yesterday.

Merchandise imports amounted to $4.716 billion in June, 3.6 percent lower than the $4.890 billion a year ago.

A four-percent decline in imports was also recorded in May.

“The decrease in total imports for this period was due to the negative performance of three out of the top 10 major commodities for the month. These were industrial machinery and equipment; electronic products; and other food and live animals,” the PSA said.

Imports of electronics declined by 22 percent to $855 million in June from $1.097 billion in the same period last year.

Socioeconomic planning chief Arsenio Balisacan said in a statement the decline in the country’s imports of capital goods is a concern that needs to be addressed.

“In part, the problem of port congestion in Manila may be a contributing factor and should be expeditiously resolved. Logistical issues result in additional cost to both producers and consumers, especially for raw materials and capital goods intended for production as well as food and other non-durable items for consumption,” Balisacan said.

Containers have piled up at Manila’s ports following the imposition of a truck ban in the City of Manila in February.

Balisacan said efforts should be firmed up to encourage businesses to invest more on capital goods.

“These are crucial for increasing the global competitiveness of domestic firms in the Philippines,” he said.

China remained the country’s biggest source of imports, accounting for 17.2 of total purchases in June.

Payments for imports from China amounted to $809.64 million in June, up 17.9 percent from the $686.79 million in June last year.

South Korea was the second largest source of imports with 9.8 percent share valued at $461.33 million, followed by Japan which accounted for 9.6 percent or $451.71 million.

For the first semester, the country’s imports were valued at $31.346 billion, 5.4 percent higher than the $29.752 billion in the same period of last year. –Louella D. Desiderio (The Philippine Star)