Imports up 28.4% in October

Business World

Merchandise imports rose by an annual 28.4% in October -- the fastest pace in five months -- on the back of sustained demand for consumer goods, particularly electronics, and rising global oil prices, the government reported on Thursday.

The October import bill was $4.89 billion, higher than last year’s $3.81 billion, according to data released by the National Statistics Office (NSO).

Month-on-month growth similarly accelerated to 6.9% from September’s 2.7%.

With export revenues at $4.78 billion in October, the Philippines recorded a trade gap of $112 million, wider than last year’s $60 million.

The latest import number put the 10-month tally to $44.8 billion, still shy of the government’s full-year target of $55.7 billion which is equivalent to a 20% growth.

It also meant a cumulative trade deficit of $1.74 billion so far, well below the official trade shortfall goal of $12.6 billion for this year. The trade gap was $4.7 billion in 2009.

Inbound shipments of electronic products, accounting for 31.5% of overall imports, grew by 11.7% on an annual basis to $1.54 billion, slower than September’s 23.8%.

The value of imported consumer goods alone rose by 33.7% in October to $556 million, while raw materials purchased from abroad recorded a 20.2% annual growth to $1.79 billion.

"[Imports will] normalize, [but] we expect a whole year strong finish," said Ernesto B. Santiago, Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) president.

Shipments of mineral fuels and lubricants, the country’s main imported product next to electronics, surged by 47.3% year on year to $901.5 million as Dubai crude hovered above $80 per barrel.

Japan remained the biggest source of imported products accounting for 12.3% of the total import bill, followed by the US and China.