PH imports up 29% in April 2016

MANILA, Philippines – Philippine imports grew by 29.2% in April, led by double-digit increases in purchases of capital goods, raw materials, intermediate goods, and consumer goods, the according to the National Economic and Development Authority (NEDA).

The latest import figures point to a “robust economic performance” in the second quarter of the year, Socioeconomic Planning Secretary Emmanuel F. Esguerra said.

The Philippine Statistics Authority (PSA) reported on Friday, June 24, that imports totaled $6.5 billion in April, up from $5.1 billion in the same month last year. 

NEDA also pointed out that among selected Asian economies, only the Philippines and Vietnam posted positive imports growth for the month.

“The continued strength of merchandise imports, buoyed by purchases of capital goods and durable goods, hints of a robust economic performance in the second quarter,” said Esguerra.

Esguerra added that the continued growth of capital goods shows the confidence the business sector now has. Similarly, the rise in consumer goods indicates that consumer demand is strong.

Upward trend

Capital goods grew by by 56.7% to $2.2 billion in April, it’s 8^th consecutive month of double-digit growth.

The increase was led by telecommunication equipment and electrical machinery, power generating machines, and land transport equipment, PSA data showed.

Esguerra said this trend “is expected to continue for the rest of the year especially given that the incoming administration has vowed to continue infrastructure spending, while a renewed focus on the manufacturing sector could further boost demand for capital goods.”

Imports for raw materials and intermediate goods increased by 28.9% to $2.5 billion, bouncing back from a sluggish 5.3% growth in the previous month.

Consumer goods increased by 21.3% to $1.1 billion in for the month, led by spending on durable goods such as passenger cars and motorized cycles, home appliances, and miscellaneous manufactures.

Esguerra said this may continue to increase, especially if the incoming administration pursues its planned reforms on lowering income tax rates, which will leave consumers with more disposable income.

Incoming finance secretary Carlos Dominguez revealed more details about the administration’s tax reform pleas, when he addressed a business leaders’ forum in Davao City last week.

NEDA said imports of petroleum products are still expected to contribute positively to imports growth towards the end of the year, while the foreseen gradual recovery in oil prices could reduce pressure on the economies of net oil exporting countries, particularly those in the Middle East.

“As trade volume picks up, a long-term solution to the congestion in seaports becomes even more imperative,” he added. – Rappler.com