The National Economic and Development Authority (Neda) is concerned that weak electronics demand could dampen the country’s external trade growth in the coming months.
Neda Director General and Socioeconomic Planning Secretary Ernesto M. Pernia said, however, strong construction activity and consumption spending in the second half of the year could boost trade.
“The trend of imports growth is expected to remain positive, albeit at a slightly lower pace due to a relatively weak outlook for electronics exports, which will affect the importation of electrical equipment. However, strong construction activity will continue to boost spending on durable equipment and capital goods,” Pernia said.
In June imports slowed to 15.4 percent, from 39.3 percent in May this year and 23 percent in
June 2015.
In the January-to-June period, imports grew 17.7 percent to $38.746 billion, from $32.917 billion in the same period of last year.
Pernia said this is one reason the government must continue to support growth-enhancing measures that will sustain consumption and investment.
“These include continuous government spending on infrastructure, such as modernization of seaports and airports, to ease the flow of goods into and within the country, and a comprehensive tax-reform package to boost consumer spending and investments,” Pernia said.
Despite recording slower growth in June, however, the country still recorded the highest import growth in Asia in the first semester of the year.
Philippine Statistics Authority (PSA) data showed that in June the Philippines outperformed Vietnam (1.9 percent), Malaysia (-1 percent) and Indonesia (-6.8 percent).
The country also outperformed India (-7.3 percent), People’s Republic of China (-8.4 percent) and Thailand (-10.1 percent).
“This performance shows the strength of domestic demand in the country, particularly in consumption and investment, as reflected by the latest real GDP growth of 7 percent in the second quarter,” Pernia said.
Meanwhile, total import payments to the top 10 imports sources for June 2016 amounted to $5.44 billion, or 79.4 percent of the total import bill.
The three biggest import sources of the Philippines in June were China, which accounted for 18.8 percent of total imports, followed by Japan, with 12.4 percent; and Thailand, with 7.8 percent.
Imports from China were recorded at $1.287 billion. It represented an increase of 45.8 percent, from $882.92 million in June 2015.
Shipments from Japan amounted to $852.20 million to the total import bill in June 2016. It represented an increase of 86.1 percent, from its June 2015 value of $457.96 million.
The country’s imports from Thailand were valued at $531.89 million in June 2016. This was a 23.7-percent growth from $429.98 million in June 2015.