May imports at 8-month high, but electronics still down

MANILA, Philippines – Merchandise imports rose at their highest level in 8 months in May, but the main electronics item fell by double digits, raising doubts that the country’s economic woes are over.

Data from the National Statistics Office showed imports in May rose 10.1% to $5.386 billion from $4.892 billion in the same month last year. The growth was the highest since September 2011, when imports grew 10.6%.

High oil shipments largely supported the increase. This means the latest import data say more about the demand for goods in the domestic economy than overseas.

Imports of mineral fuels, lubricants and related materials, which accounted for 24% of the total bill in May, soared 88.1% to $1.29 billion from $685.91 million last year. The Philippines buys most of its fuel requirements abroad.

However, imports of electronics, the main import item with a 26.7% share, fell 15.3% to $1.44 billion from $1.7 billion. These are used as raw material for the country’s exports, a major driver of economic growth.

As the global downturn lingers, outlook for Philippine exports remain soft, with demand for electronics still on a decline.

Exports in May grew 19.7%, their fastest pace since December 2010, but the growth was mainly due to a low base in 2011.

Electronics shipments in May fell 0.7% after a steeper fall of 23.8% in April. – Rappler.com

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