PH imports up 39.3% in May 2016

MANILA, Philippines – Philippine imports grew by 39.3% year-on-year in May 2016, an indicator that local consumption remains strong despite global headwinds, the National Economic and Development Authority (NEDA) said on Tuuesday, July 26.

Data released by the Philippine Statistics Authority on Tuesday, showed that total payments for imported goods reached $6.7 billion in May, from $4.8 billion last year.

The increase in imports was driven by capital and consumer goods which  Socioeconomic Planning Secretary Ernesto Pernia described as a “clear signal that our domestic economic conditions remain robust despite the weak global economy.”

“With its current upward trend, we expect investments and consumption to drive growth for the rest of the year,” he added.

The country also bucked the regional trend of declining imports – NEDA pointed out that among 11 selected Asian countries, only the Philippines posted a double-digit growth while other countries declined.

“With the sluggish import activities in the region, we must focus on fast-tracking the country’s infrastructure development to support the growth of our economy and improve our absorptive capacity for investments,” Pernia said.

China remained the country’s top source for goods in May with a 65.7% increase for the month.

The country also more than doubled its imports from Japan at 122.7% in May, due to the growing demand for power-generating machines, telecommunication equipment and electrical machinery, and other mineral fuels and lubricants.

Capital goods, autos up

The inflow of capital goods, or those used to produce other goods, doubled its growth in May, posting a 99.99% increase, its 16th consecutive month of growth and 9^th consecutive month of double-digit growth.

Consumer goods increased by 47.2% to $1.2 billion, driven by higher demand for passenger cars and motorcycles during the period, NEDA said.

Pernia tied this with the findings of Ambisyon Natin 2040, which listed car ownership as among the aspirations of the Filipino people.

He added, however, that “infrastructure, especially roads, must keep up.”

“At the same time, public transport systems must be improved to expand people’s transport options,” Pernia said.

This high domestic demand for vehicles, he said, could also be leveraged into a source of growth if local firms can integrate into automotive supply chains.

While imports have so far been unaffected by the global slowdown, Philippine exports have felt the pinch. NEDA said that firms may need to adopt a new strategy under the current environment. – Rappler.com