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PHL imports contract in Sept. as electronic shipments shrink – PSA


(Updated 3:15 p.m.) Merchandise imports contracted in September, mainly due to a hefty decline in shipments of electronics as global demand continues to impact on global trade. 
 
Import payments decreased by 2.6 percent to $5.568 billion from $5.719 billion a year earlier, the Philippine Statistics Authority (PSA) said Thursday, noting the figures for September also compare with a revised 0.9 percent growth in August.
 
Still, the trade deficit in September improved to a surplus of $281 million from a deficit of $663 million in September 2013.
 
"The decrease in total imports for this period was due to the negative performance of three out of the top ten major commodities for the month.  These were: transport equipment; electronic products; and other food and live animals," the PSA said.
 
In a phone interview with GMA News Online, Metropolitan Bank & Trust Company research head Ildemarc Bautista said the slowdown in imports is a general trend across the globe.
 
"We suspect it has something to do with the slowdown in global trade," he said.
 
Imports of electronic products – the top import commodity which accounts for 24.6 percent of the total – went down by 22 percent to $1.369 billion from $1.756 billion.
 
Shipments of transport equipment, with a share of 7.1 percent to the total, declined by 43.1 percent to$393.97 million from $692.97 million. 

Household consumption

Sustained growth in household consumption boosted total import payments on consumer goods by 17.3 percent, reaching $779.6 million from $664.4 million, the National Economic and Development Authority (NEDA) said in an e-mailed statement.
 
“But the government needs to have close monitoring of the successive decline in the importation of materials and accessories for the manufacture of electronic equipment, as this could be a leading indicator of the country’s external prospects, especially in the exports of manufactured goods,” Economic Planning Secretary Arsenio Balisacan said in the statement.
 
Balisacan, who is also NEDA Director-General, noted the downward trend in international prices encouraged buying in mineral fuels and lubricants, which increased to $1.3 billion from $978.1 million.
 
"The anticipated low energy prices especially for crude oil could be a promising support to the growing energy demand of the country in the short run. The government and the private sector could take this opportunity to acquire future oil contracts to maintain stability of power supply in the country while exploring and expanding alternative energy sources," he said.
 

Port congestion
 
Apart from external factors, the ports in Manila were still facing problems of cargo congestion that month, Bautista noted.
 
"There was some difficulty in getting shipments in and out of the Philippines and it still continues," he said.
 
In mid-September, the Cabinet Cluster on Port Congestion announced port operations has significantly increased its efficiency and productivity after the City of Manila lifted its daytime truck ban.
 
China was still the biggest source of imports, accounting for $781.01 million or 14 percent of the total. 
 
Shipments from Taiwan reached $489.56 million or 8.8 percent.
 
The US was the third largest source of shipments to the Philippines, while the Japan ranked fourth and Korea, fifth.
 
In January to September, Philippine imports totaled $48.134 billion, up 3.4 percent from $46.529 billion in the same comparable period.

Staying postive

Despite a contraction in September, imports is seen to remain positive for the whole of 2014, Balisacan said.
 
"Overall growth trend of imports remains anchored on the general sentiment of the economy for the period. Current quarter outlook index for both consumer and business confidence show a relatively weaker traction due to seasonal weak demand and a slack in industrial production. Still, imports are expected to pick up in the beginning of the fourth quarter in time for the holiday season," he said.
 
With faster exports growth of 9.9 percent, trade-in-goods deficit for the January to September period narrowed significantly to $1.5 billion from $4.1 billion in the comparable period in 2013.
 
“In time for the anticipated increase in economic activity towards the end of the year, the government should remain vigilant on the logistical challenges that may arise especially those involving importation of consumer goods,” the Cabinet official added. – VS, GMA News
Tags: phlimports, trade
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