PHL March imports plunge steepest in 11 months

Imports in March fell the steepest in 11 months, a development that could temper the first quarter trade deficit. 

 

Data released by the National Statistics Office Friday showed the import bill continued to plummet in March, down by 8.4 percent to $4.92 billion from $5.371 billion a year earlier. 

 

The March contraction was the sharpest year-on-year decline since the 13.6-percent drop in April last year.

 

In the first quarter, imports totaled to $14.356 billion, down 7.4 percent from the first three months of 2012. 

 

Total imports in the first quarter reached $12.081 billion, with the trade deficit settling at $2.276 billion or 13.3 percent narrower from $2.625 billion in the same comparable period. 

 

Sought for comment, Metropolitan Bank & Trust Co. research head Ildemarc Bautista surmised the decline in imports would cushion the negative impact of trade in the gross domestic product. 

 

“This simply means that some sort of lift in balance of trade numbers will be seen. Remember trade's contribution is computed as exports minus imports,” he told GMA News Online in a telephone interview. 

 

“The easing in trade deficit last year—due to pick-up in exports and the marginal decline in imports—provided a boost to growth. So, something similar but a more marginal boost may be seen,” Bautista added. 

 

Electronic products, which accounted for a fourth of total merchandise imports in March, dipped 0.6 percent to $1.246 billion, softer than February’s 12.6 percent decline.

 

Bautista said this was “expected” given the slow global economic recovery espousing weak demand for electronic products. 

 

Semiconductors and other electronics are the country's top export products, in which the bulk of raw materials are sourced overseas. Given the easing demand for such products, the National Economic and Development Authority has put diversifying export products at the forefront of its priorities. 

 

Going forward, Bautista said the exact impact of trade is yet to be seen as the world's economic recovery remains “unsure.

 

“I'm not sure about how these numbers are really pointing out a trend. We'll have to wait for more data in the second quarter to see how these would really impact the Philippine economy this year,” he noted. 

 

China was the top source of inbound shipments, accounting for 11.5 percent or $564.45 million of the total imports bill.

 

Shipments from the US accounted for 11 percent of the total valued at $545.03 million, and from Taiwan reflecting 10 percent valued at $489.87 million. — VS, GMA News