June imports dip by 3.6%

MANILA, Philippines - The country's merchandise imports for June 2014 contracted by 3.6 percent to $4.716 billion from the $4.89 billion posted a year ago, the Philippine Statistical Authority (PSA) reported on Tuesday.

"The decrease in total imports for this period was due to the negative performance of three out of the top 10 major commodities for the month.  These were: industrial machinery and equipment; electronic products; and other food and live animals," PSA noted.

Socioeconomic Planning Secretary Arsenio Balisacan said  the congestion in Manila may be a contributing factor to the decline in the country's imports of capital goods.

"Logistical issues result in additional cost to both producers and consumers, especially for raw materials and capital goods intended for production as well as food and other non-durable items for consumption,” he said. "Efforts should be firmed up to encourage businesses to invest more on capital goods. These are crucial for increasing the global competitiveness of domestic firms in the Philippines."

Total imports for the first half of the year amounted to $31.346 billion, a 5.4-percent improvement from the $29.752 billion posted in the first semester of 2013. Meanwhile, the country's balance of goods in June posted a $731-million surplus compared to the $399-million deficit a year ago.

Mineral fuels, lubricants and related materials were the country's top import, making up 24.7 percent of the aggregate import bill. This was followed by electronic products, transport equipment, industrial machinery and equipment, and other food and live animals.

China was the country's top imports source with a 17.2-percent share of the total. This was followed by South Korea, Japan, United States and Singapore.