January imports down 8%

MANILA, Philippines - Merchandise imports declined eight percent in January from a year ago due to lower purchases of electronic products and mineral fuels.

The National Statistics Office (NSO) reported yesterday that the value of merchandise imports in January went down to $4.725 billion from last year’s $5.134 billion.

The drop in imports seen in January is bigger than the 3.2 percent decline seen in the same month last year.

The contraction seen in January is also a reversal of the revised 14.4 percent growth posted in December.

Compared to the $5.300 billion worth of imports in December, the value of inward shipments in January decreased by 10.9 percent.

Payments for electronic products, which had the largest share or 24.4 percent of the total import bill, fell 14.4 percent to $1.150 billion in January compared to a year ago.

Imports of mineral fuels, which had the second biggest share or 19.6 percent, also dropped 30 percent to $924.87 million from last year.

Inward shipments of other commodity groups meanwhile, posted increases such as transport equipment, industrial machinery equipment and food and live animals.

The value of imported transport equipment went up 24.3 percent to $369.24 million from a year ago.

Payments for industrial machinery and equipment grew 10.9 percent to $263.66 million from the previous year, while imports of food and live animals were valued at $139.33 million, 30.8 percent higher than the previous year.

By country, the NSO noted that China was the biggest source of imports for the month, accounting for a 13.1 percent share or $616.98 million, rising by 15.2 percent from last year.

University of the Philippines economist Benjamin Diokno said the sharp drop in imports in January, after a similar contraction last year, does not support the picture of a rapid growing economy.

He said that while the import performance of January does not make up a year, the continuing decline of electronic product imports should be a concern for economic and trade authorities.

The decline in imports of minerals, fuels and lubricants likewise suggest that the economy may not be growing as fast as planned.

“Historically, strong GDP (gross domestic product) growth is accompanied by strong imports growth, coming from higher demand for fuel and electricity needed for rising economic activity, and higher imports requirement for construction, telecommunications, hotel services and other services,” he said.