Philippine imports recorded its highest growth for the year at 22.6 percent in June 2015, recovering from three consecutive months of contractions since March, according to the National Economic and Development Authority (NEDA).
The Philippine Statistics Authority (PSA) reported today that the spending for imported goods rose to US$5.9 billion in June 2015 from US$4.8 billion in the same month last year. The recovery was due to significant increases in imports of raw materials and intermediate goods (49.2%), capital goods (23.8%), and consumer goods (13.1%), which made up for the continuing decline in the import value of mineral fuels and lubricants (-21.9%).
“The significant surge of import payments signals improvement in the external environment. The increase in importation of raw materials leads us to expect a sustained growth of domestic production while the acquisition of capital goods indicates positive investor confidence,” said Economic Planning Secretary Arsenio M. Balisacan.
Furthermore, the Philippines ranked first among monitored economies in East and Southeast Asia in terms of imports growth in June 2015. Except for Vietnam, all these countries registered a decline in imports for the said period.
Accounting for nearly half (48.9%) of the country’s total imports, payments for raw materials and intermediate goods posted a positive turnaround, after declining for three consecutive months, at US$2.9 billion in June 2015 from US$1.9 billion in June last year. Moreover, payments for imported capital goods continue to pose double-digit increase for five successive months at US$1.3 billion in June 2015 from US$1.1 billion from the same month last year.
“The country’s continued robust spending on imported capital goods, particularly office, electrical and telecommunications machines and equipment, bodes well for the growth in capital formation,” the Cabinet official added.
Meanwhile, overseas spending for consumer goods grew at US$807 million in June 2015 from US$713.4 million in June last year due to the increased payments for durable goods, particularly for passenger cars and motorized cycle, which reflects an upbeat performance of the country’s automotive industry.
“For the remaining months of the year, domestic demand is expected to prop up imports growth. While there may be a slack in consumer activities during the third quarter of the year due to low seasonal demand for consumer goods, the recovery of government spending should keep imports afloat, particularly on imported capital goods,” said Balisacan.