Philippine imports expanded for the first time in over two years, while exports unexpectedly slipped, latest trade figures of the Philippine Statistics Authority showed on Thursday, April 8.

Total imported goods in February amounted to $7.6 billion, 2.7% higher than in the same month in 2020. This is the first growth in imports since May 2019.

The country imported more telecommunication equipment and electrical machinery (23.2%), food and live animals (13.7%), and plastics (8.8%) during February.

Year-to-date, imports stand at $16 billion, a decline of 5.6% from the same period in 2020.

ING Bank senior economist Nicholas Mapa noted that the rebound in imports was “a result of base effects rather than a true recovery for the sector with the economy still stuck in recession amidst an ongoing 12-month lockdown.”

But Mapa sees imports expanding further in the coming months, benefiting from a favorable base and with manufacturers replenishing depleted inventories.

“Although we’ve seen growth in raw materials and capital goods, overall investment activity in the Philippines remains soft with corporates and households postponing expansion activities until the economic outlook improves,” he said.

Meanwhile, exports in February amounted to $5.3 billion, a contraction of 2.3% from the same month in 2020.

Mapa noted that exports may continue to face challenges in the coming months, as other countries reinstate lockdowns due to a resurgence of COVID-19 infections.

Acting Socioeconomic Planning Secretary Karl Chua said, however, that the latest export figures were “signs of recovery.” – Rappler.com