July imports post flat growth

MANILA, Philippines - The country’s merchandise imports posted flat growth in July this year  from a year ago amid a decline in purchases of electronic products.   

The Philippine Statistics Authority (PSA) said yesterday the country’s  total import bill amounted to $5.494 billion in July 2014, only 0.002  percent higher than in the same month in 2013.   

Electronic products which accounted for 20.8 percent of July’s total  imports, declined 29.8 percent to $1.142 billion in July this year  compared to the previous year’s $1.627 billion.    

The National Economic and Development Authority (NEDA) said the latest  result reflects a regional phenomenon with most East and Southeast  Asian trade-oriented economies registering lower imports.   

Vietnam, Taiwan, and South Korea were the only countries in the region  that posted growth in merchandise imports with increases of 16.4  percent, 9.5 percent, and 5.8 percent, respectively.   

China remained the country’s top source of imports for the month with  its 14.2 percent share amounting to $781.92 million this year, 5.7  percent higher than the $739.48 million last year.   

Japan placed second with its 8.5 percent share valued at $465.47 million this year, a 4.8 percent increase over the $443.98 million a year ago, while Taiwan came in third as it accounted for 8.3 percent  worth $454.93 million this year, two percent lower than the $464.31  million in 2013.   

For the January to July period, the country’s total imports climbed 4.8 percent to $36.946 billion this year from $35.246 billion in the  same period of last year.

NEDA deputy director general Emmanuel Esguerra said the “sharp contractions in the imports of materials and accessories for  the manufacture of electrical equipments and other raw materials for  production, as well as imports of capital goods need to be monitored  periodically since they provide signals on future demand conditions on  both domestic and external fronts.”   

Addressing congestion at Manila’s ports is also seen to help improve the country’s imports.   

Esguerra said that while the lifting of the truck ban in the City of  Manila may partly ease the problem, improving the capacity and  efficiency of alternative ports is still necessary.   

Earlier this month, Manila City Mayor Joseph Estrada lifted the expanded truck ban which has been blamed for the pileup  of cargoes at the city’s ports.   

As the Association of Southeast Asian Nations (ASEAN) member states  gear up for the upcoming economic integration, Esguerra said  looking at opportunities within the region would likewise help improve  imports.   

“It is also important for the government to continue exploring avenues  for greater opportunities within the ASEAN region and take advantage  of increased economic cooperation among ASEAN countries,” he said.