The country’s import bill rose by 4.1 percent to $6.08 billion in August, from $5.85 billion recorded a year ago, on the back of higher payments for electronic products, according to data released by the Philippine Statistics Authority (PSA) on Tuesday.
The latest PSA data boosted the government’s confidence that the holidays and the onset of the election season would boost imports further.
“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,” Economic Planning Secretary and Neda Director General Arsenio M. Balisacan said.
Figures from the PSA showed that payments for electronic products, which accounted for 33.7 percent of total import bill, amounted to $2.05 billion in August. The PSA said this is 68.5 percent higher than last year’s figure of $1.21 billion.
“Mineral fuels, lubricants and related materials placed second with a 10.5-percent share to total imports, valued at $635.87 million. This registered a decrease of 49.7 percent, from its previous year’s level of $1.264 billion,” the PSA said.
The Neda said spending for imported consumer goods grew by 19 percent to $1 billion in August, from $865.9 million a year ago due to higher purchases of both durable goods and nondurable goods.
“Imports of raw materials and intermediate goods, as well as consumer goods, will provide the boost going forward. Ramped-up importation for these commodity subsectors 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.
Among the monitored trade-oriented economies in East and Southeast Asia for August this year, the Neda said only the Philippines and Vietnam 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.
He, however, warned that the “challenging” external environment, coupled with severe weather disturbances that can exert upward pressure on the price of commodities, may 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, the 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,” Balisacan said.
In August the country’s top sources of imports were China, the US, Taiwan and Japan.
The balance of trade in goods of the Philippines during the period registered a deficit of $953.89 million, higher than the $373.28-million deficit in August 2014.
Combined imports for January to August amounted to $43.65 billion, a 1.5-percent increase compared with $43.02 billion in the same period last year.