2011 import growth slows to 9.5% from 26.9%

Rappler.com
As global demand slowed due to the economic woes of main markets in the west, importers in the Philippines slashed their purchases in 2011

MANILA, Philippines – As global demand slowed due to the economic woes of main markets in the west, importers in the Philippines slashed their purchases, according to the statistics agency.

On Tuesday, February 28, the National Statistics Office reported that total imports of $60.14 billion in 2011 reflected a slower growth of only 9.5% from 26.9% in 2010.

Notable was the 6.5% contraction to $4.628 billion in the month of December 2011 from $4.949 billion in December 2010. This is the first time since 2009 when imports posted a contraction.  

In a statement on Tuesday, February 28, Socioeconomic Planning Cayetano W. Paderanga Jr. said this was due to “the global crisis [that] did not recover as fast as we were hoping for.”

He said the “continuing troubles in Europe” added to the global trade woes.

2012 recovery

Paderanga said the Philippines is banking on the economic recovery of its main trade partners this 2012.

The interagency Development Budget Coordination Committee (DBCC) expects a 15% growth in imports this year.

“The government will continue to assume this double-digit growth in merchandise imports in 2012, despite reports from industry analysts that it is likely that the electronics sector will have a more sluggish performance given a weaker-than-expected global demand,” Paderanga said.
 
“Stalled recovery of the global economy may also drag domestic growth, possibly resulting in companies’ lower-than-programmed capital expenditures and households’ slashed spending on consumer goods. However, we are maintaining our positive outlook on the country’s merchandise imports,” added Paderanga.
 
“Ten years ago we found out that the US growth rate actually has a very good one quarter lead over our exports, especially semiconductors. That relationship has weakened in the past 3 years,” Paderanga said. – Rappler.com

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