Imports seen to rebound in May

MANILA, Philippines - Merchandise imports are expected to recover in the latter part of the year after a 10-percent decline was recorded in May, the research arm of Metropolitan Bank and Trust Co. (Metrobank) said.

“Despite the recent decline, imports growth is seen to improve in the third quarter as this period is the country’s import season,” Pauline Revillas, research analyst at Metrobank, said in the latest Weekly Views from the Metro.

“Moreover, the contraction is not expected to persist in the long run as the economies of the Philippines’ major trading partners gradually improve,” she continued.

Imports fell 9.6 percent to $4.77 billion in May from $5.27 billion in the same month last year amid the lackluster performance of mineral fuels, lubricants and related materials; cereals and cereal preparations; industrial machinery and equipment; and electronic products.

“The contraction in the imports of electronic products which are used as raw materials for the country’s top export product is expected as economies of major trading partners remain fragile,” Revillas noted.

In the five months to May, imports climbed 5.9 percent to $26.336 billion from the same period a year ago.

“The World Trade Organization reported that world trade remained lackluster in the first five months of 2014 on the back of the uneven recovery in the global economy,” Revillas said.

“The still uncertain global macroeconomic backdrop has caused Philippine imports to post anemic growth since February from a high at the start of the year,” she added.

The government has forecast merchandise imports to expand by nine percent this year over year-ago levels amid rehabilitation and reconstruction efforts being done following several typhoons that hit the country in late 2013.