PH imports recover in January: 21.8% growth

'ROBUST' IMPORTS. The country's merchandise imports grew by 21.8% in January 2014. Photo by AFP

MANILA, Philippines – Total merchandise imports grew by 21.8% in January 2014, recovering from a slow performance in 2013, the National Economic and Development Authority (NEDA) said on Tuesday, March 25.

NEDA Director-General Arsenio Balisacan said in a statement that the latest figures suggest an upward trend in imports.

“The three-month moving average growth in January 2014 suggests that imports could be trending upwards in line with the expected recovery in exports,” Balisacan said.

The NEDA chief said raw materials, intermediate goods, and mineral fuels and lubricants “largely contributed to the robust import growth during the month.”

NEDA reported that payments for imported goods during the period reached US$5.8 billion, a 21.8% increased from US$4.7 billion in January 2013.

The total trade-in-goods deficit widened to US$1.4 billion in January 2014 from US$716.3 million in January last year.

Import of raw materials and intermediate goods reached US$2.2 billion in January 2014, up by 27.3% from US$1.8 billion in January 2013. This was due to increased payments of semi-processed goods that grew by 37.5% during the period.

Balisacan said that the positive performance “may be reflective of the optimistic outlook of businesses on their own operations as their next quarter outlook index [2nd Quarter of 2014] is higher.”

This outlook, according to the Bangko Sentral ng Pilipinas’ Business Expectation Survey for the first quarter of 2014, was based on new public and private construction projects, boosted by rehabilitation efforts following Typhoon Yolanda. Brisk business prospects arising from companies’ competitive marketing strategies also contributed to the outlook.

NEDA also reported that imports of consumer goods grew by 23.2% in January 2014 to US$766.9 million, from US$622.4 million in January 2013. Capital goods grew by 7.9% to US$1.5 billion in January 2014 from US$1.4 billion a year ago.

China continued to be the country’s top import source with a 14.7% share, equivalent to US$844 million.

The second biggest import source is the USA with a 10.6% share, followed by South Korea (8.7%), Taiwan (7.5%), France (6.3%), Japan (6.2%), Saudi Arabia (6.2%), Singapore (5.7%), Thailand (5.3%), and Indonesia (4.5%). – Rappler.com