January imports plunge 34.5% to $3.27 billion

MANILA, Philippines - Philippine imports plunged 34.5 percent to $3.270 billion in January from $4.993 billion in the same period last year as the global economic slowdown continued to take a toll on trade, the National Statistics Office (NSO) reported yesterday.

It was the lowest monthly total for imports since February 2005 and the fourth straight month that imports have fallen on an annual basis.

As the electronics-led export sector axed thousands of jobs over the last four months, the country’s purchases of electronic components plummeted by 43.3 percent to $1.308 billion in January from $2.308 billion in the same period last year. In December, the sector also recorded a 46.1 percent drop from a year ago level.

Electronics accounted for 40 percent of the country’s total import payment.

On a month-on-month basis, however, payments for electronics products managed to grow by 15.1 percent from $1.136 billion in December 2008.

Jose Vistan of AB Capital Securities said the January imports drop was the steepest fall since the government started recording data in 1992, and the lowest monthly value since February 2005.

However, he expressed optimism by saying that the month-on-month rise in electronics products imports suggests a rebound in exports ahead.

“It’s one of the first signs of a possible turnaround,” Vistan added.

January imports of oil products fell 59 percent from the previous year to $421.93 million.

The only key imports posting gains were transport equipment, up 43.7 percent from the previous year to $198.34 million, and industrial machinery, which rose 0.1 percent to $165.49 million.

The country recorded a trade deficit of $759 million in January, down from a deficit of $762 million in the same period last year.

The US is still the country’s biggest source of imports with 17.7 percent share or $578 million of the total import bill. The amount, however, was down by 23.6 percent from $757.62 million in January 2008.

Japan (including Okinawa), the second biggest source of imports with 10.9 percent share, recorded payments worth $354.99 million, a decline of 35.2 percent from $548.11 million in January 2008.

China, came third, accounting for 10.8 percent share of the total import bill in January 2009 which declined by 5.6 percent to $354.35 million from $375.49 million during the same month in 2008.

Other major sounds of imports in January were Singapore, $336 million; Korea, $243 million; Taiwan; $202.68 million; Thailand, $170 million and Hong Kong, $131.97 million.