Imports growth hits 24.6% in September

MERCHANDISE imports rose by 24.6% in September, the fastest growth rate since May this year, on the back of sustained demand for electronic products and higher global oil prices, the government said on Friday.

The value of inbound shipments totaled $4.6 billion, higher than the $3.7 billion posted a year ago, the National Statistics Office (NSO) reported.

With exports at $5.3 billion in September, the Philippines recorded a trade surplus of $751 million -- the highest since December 2000.

On a cumulative basis, goods purchased in the nine-month period ending September were valued at $39.9 billion, which translated to 26% growth from a year ago.

"Like I always say, imports and exports are tracking each other," said Sergio R. Ortiz-Luis, Jr., president of Philippine Exporters Confederation, Inc. (Philexport), referring to the upwardly revised and record-high 46.4% export growth in September.

Raul V. Fabella, economist at the University of the Philippines, said the imports result was "a good indicator that the economy has recovered from last year".

University of Asia and the Pacific (UA&P) senior economist Cid L. Terosa, however, pointed out that "[the growth was a result of] base effect because imports [growth] declined during the previous period, so any increase after would appear big."

On a monthly basis, imports grew by 2.7%, a rebound from August’s revised 4.9% slump.

Inward shipments of electronics, which comprised 35.7% of the total import bill, grew by 23.8% on an annual basis to $1.6 billion. The sector’s performance, however, was slower than the 27.2% year-on-year growth in August.

"It is a bullish time for all of us," said Arthur J. Young, Jr., vice-chairman of the Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI).

Mr. Young, however, expects imports of electronics to soften a bit in the last quarter amid expectations that exports will slow down. "The trend is correct. It is going back to its historical trend," he said.

Ernesto B. Santiago, president of SEIPI, said: "[Electronics imports] are expected to normalize."

Demand for consumer goods also influenced the sector’s performance in the run-up to the Christmas holidays, industry officials said.Imported consumer goods surged by 32.8% in September to $545.2 million from $410.5 million last year.

Revenues from mineral fuels and lubricants, the second largest import with a total share of 16.1%, grew by an annual 6.9% to $734.7 million as Dubai crude averaged $75.7 per barrel, higher than last year’s $67.3 a barrel.

Other key imports -- transport equipment, industrial machinery and equipment, ores and metal scrap, and plastic -- recorded growth in the high double digits.

The government said its 20% growth goal for imports this year will be met, a view that was backed by the industry.

"We are on track to reach the trade target," National Economic and Development Authority Deputy Director-General Augusto B. Santos toldBusinessWorld.

Philexport’s Mr. Ortiz-Luis said "exports will end no less than 25%."

"Imports will be near the average of exports," he added.

Japan remained as biggest source of imported products with a share of 12.2%, followed by the US and Singapore. -- Karen Joyce Q. Ang