Holiday spending is expected to keep import growth robust throughout the fourth quarter, according to the National Economic and Development Authority (Neda).
The Philippine Statistics Authority (PSA) reported that imports posted a growth of 6.7 percent to $6.17 billion in September. With this, the combined imports for the nine-month period reached $49.92 billion, a 2.3-percent increase.
“Upbeat sentiment from the business sector and an overall improvement in consumer expectations for the coming quarter will likely keep imports afloat, especially those in the manufacturing and construction sectors,” Economic Planning Secretary Arsenio M. Balisacan said.
“Improved purchasing power due to low inflation will also keep consumer demand vibrant in the succeeding months, and will further be ramped up by holiday spending,” he added.
Balisacan said the higher import bill was also due to low prices of goods being sold globally, brought about by the low global demand for various commodities.
With this, Balisacan said local industries can take advantage of the low prices and beef up their inventory and expand capacity at this time.
“On the back of sluggish global growth, economic policies should continue to encourage investments that cater to domestic demand. Continuous improvements in product quality, innovation and infrastructure support to local industries should be sustained in order to elevate the competitiveness of the domestic industries, and make them at par with imported products,” he said.
The Neda said the growth in imports in September was due to the 40.7-percent growth in capital goods importation to $2 billion. This, Balisacan noted, was the highest for the year.
Raw materials and intermediate goods also increased by 20.1 percent in September 2015 to reach $2.7 billion. The import bill for consumer goods grew by 10.1 percent to $876.8 million in September due to higher purchases of durable goods such as passenger cars and motorbikes.