The rise in the country’s import receipts amid the prevailing low oil prices should prompt businesses—particularly those in the industry sector—to start expanding their operations, the National Economic and Development Authority (Neda) said.
“The persistent low oil price will further boost importation of petroleum crude and other mineral fuels for the succeeding period, which bodes well for the industry sector,” Neda Officer in Charge (OIC) and Deputy Director General for Programming Rolando G. Tungpalan said.
The country’s import bill rebounded to a growth of 11.2 percent in February, from a contraction of 12.4 percent in January. Last year inward shipment of goods increased by 1.7 percent.
The Neda said the increase in import receipts was due to the 21.5-percent increase in capital goods, followed by raw materials and intermediate goods at 16.7 percent, and consumer goods at 12.2 percent.
“This good performance suggests robust economic activity in construction and manufacturing and is likely reflective of upbeat domestic demand, particularly in private consumption and investments. We expect this to remain favorable over the near term,” Tungpalan said.
“If a similar trend in importation for the succeeding month continues, it will secure government’s expectation of a strong Gross Domestic Product growth for the year,” he added.
Tungpalan said the Philippines appears to have bucked the downward trend in merchandise imports of most Asian economies.
Electronic products, the country’s main import and export, accounted for over a third, or 34.8 percent, of total imports.
Import receipts from electronic products amounted to $1.85 billion, a 42.4-percent growth from last year’s $1.3 billion.
Among the major groups of electronic products, Components/Devices or Semiconductors had the biggest share of 28.8 percent.
It posted a growth of 43.9 percent to $1.535 billion in February 2015, from $1.067 billion in February 2014.
The increase in Philippine imports, the Neda official said, can be attributed to a strong consumer base and improved employment opportunities. The Philippines’s top 3 import sources are China, with 16.3 percent of total imports; the US, including Alaska and Hawaii, with 10.7 percent; and Taiwan, with 8.4 percent.
Imports from China amounted to $865.59 million, an increase of 47.8 percent from $585.79 million in February 2014.
Shipments from the US grew 13.3 percent to $567.88 million, from $501.26 million in February 2014.
Import receipts for Taiwanese goods reached $449.20 million. It posted a 32.7-percent hike from its February 2014 value of $338.49 million.
By economic bloc, East Asia—China, Hong Kong, Japan, Macau, Mongolia, North Korea, South Korea and Taiwan—was the biggest source of the country’s imports in February 2015, as it accounted for 40.9 percent of the total imports valued at $2.18 billion. It increased by 16.5 percent from $1.87 billion in February 2014.
Commodities imported from Asean member-countries were valued at $1.31 billion, up 8.6 percent, representing a share of 24.6 percent. Imports from European Union were valued at $658.49 million. It accelerated by 3.5 percent, compared to the year-ago value of $636.08 million.