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Thursday, March 28, 2024

April imports highest in over 5 years – PSA

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Imports in April surged 29 percent to $6.52 billion from $5.05 billion year-on-year on increased orders of metal and electronic products, data from the Philippine Statistics Authority show Friday.

The PSA said merchandise imports in April were the highest in monthly value in 65 months, or since November 2010 when inbound shipments jumped 36 percent.

Cumulative imports from January to April 2016 reached $25.126 billion, up 13.5 percent from $22.142 billion year-on-year. The Philippines registered a trade deficit of $2.275 billion in April, significantly higher than the gap of $618.95 million on year.

Data showed that imports of nine of the top 10 major commodities—metal products, industrial machinery and equipment, telecommunication equipment and electrical machinery, electronic products, iron and steel, miscellaneous manufactured articles, plastics in primary and non-primary forms, transport equipment and other food and live animals—rose in April.

“Two things drove the growth in imports, electronic components and capital

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goods. This shows that we are replenishing semi-finished products to be

used in exports, so hopefully this is a sign that our mainstay electronics

exports picks up in the coming months,” Bank of the Philippine Islands market research and strategy officer Nicholas Antonio Mapa said in an email.

Electronic products, which accounted for 27 percent of the total import bill, increased 70 percent to $1.74 billion from $1.02 billion a year ago.

Imports of metal products jumped 91 percent year-on-year to $134.51 million in April this year.

Inbound shipments of mineral fuels and lubricants dropped 11 percent on-year to $694.52 million in April. 

The National Economic and Development Authority said among selected Asian economies, only the Philippines and Vietnam posted positive imports growth in April 2016.

“The continued strength of merchandise imports, buoyed by purchases of capital goods and durable goods, hints of a robust economic performance in the second quarter,” said Economic Planning Secretary Emmanuel Esguerra.

“In particular, the double-digit growth of capital goods since September 2015 points towards sustained business sector confidence while robust imports of durable consumer goods point towards strong consumer confidence,” he said.

Imports of capital goods in April on year surged 57 percent to $2.2 billion.

Neda attributed the higher shipments to stronger demand for telecommunication equipment and electrical machinery, power generating machines and land transport equipment.

“The trend is expected to continue for the rest of the year, especially given that the incoming administration has vowed to continue infrastructure spending. Also, a renewed focus on the manufacturing sector could further boost demand for capital goods,” Esguerra said.

Imports for raw materials and intermediate goods increased 29 percent to $2.5 billion after a modest 5.3-percent growth in the previous month.

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