Imports rose for the third straight month in August, rising 4.1 percent to $6.1 billion, on strong demand for electronic components, the Philippine Statistics Authority said Tuesday.
Data from the PSA, however, showed the increase was slower than the 17-percent growth registered in July, when shipments amounted to a record $6.5 billion.
“Merchandise imports growth is expected to maintain its growth momentum until the end of the year. This outcome supports our view that domestic consumption will be the main driver of economic growth, at least in the short term, while the manufacturing sector is seen to remain vibrant,” said Economic Planning Secretary and National Economic and Development Authority director-general Arsenio Balisacan.
Neda said the imports growth in August was led by higher payments of raw materials, intermediate goods and consumer goods.
Payments for raw materials and intermediate goods, which accounted for 45 percent of the otal merchandise imports, surged 41.2 percent to $2.8 billion in August from $2 billion in a year ago.
Meanwhile, spending for imported consumer goods grew 19 percent to $1 billion in August from $865.9 million in August 2014, on higher purchases of both durable goods (36.4 percent) and non-durable goods (5.1 percent).
“Imports of raw materials and intermediate goods as well as consumer goods will provide the boost going forward. Ramped-up importation for these commodity sub-sectors suggests an upward tick in the coming months as the manufacturing sector is expected to increase production in anticipation of increased demand during the holiday season,” Balisacan said.
Five out of 10 major import commodities for the month showed positive growth performance led by the electronic products, which accounted for the 33.7 percent of total import bill.
Inward shipments of electronic products climbed 68.5 percent to $2.052 billion over last year’s $1.218 billion.
This was traced to the 91.6 percent increase to $1.696 billion of semiconductors which had the biggest share of 27.9 percent among electronic products.
Data, however, showed inwards shipments of mineral fuels and lubricants plunged 49.7 percent to $635.9 million in August from a year ago, on lower prices of crude oil.
Neda said in terms of volume, the country’s purchases of petroleum crude increased 33.8 percent year-on-year.
Balisacan said the challenging external environment, coupled with severe weather disturbances that could exert upward pressure on the price of commodities, might dampen the country’s growth prospects.
“Thus, the government should remain committed to put in place policies to encourage investments, even those that cater to the domestic market. Similarly, government should also ensure that there is ample supply of commodities, particularly food, to manage risks of inflation due to weather disturbances, thus protecting the purchasing power of consumers,” he said.
Combined imports in the first eight months increased 1.5 percent to $43.651 billion from $43.020 billion in the same period last year.
The balance of trade in goods for the Philippines in August 2015 registered a deficit of $953.89 million, higher than $373.28-million deficit in the same period last year.
Among the monitored trade-oriented economies in East and Southeast Asia in August, only the Philippines and Viet Nam recorded positive imports.
“The onset of the election season in early 2016 is also seen as driver of import growth within the year, particularly of manufactured goods such as paper and similar products, textile yarn, fabrics and made-up articles,” Balisacan said.
Balisacan said with the continuing occurrence of the El Niño dry spell, there should be measures needed to ensure ample food supply, including expanding of dispersal of drought-tolerant rice varieties to farmers and using appropriate technology and providing technical support for crop management and crop diversification.