MANILA: Philippine imports rose 1.2 percent in February from a year ago on higher purchase of capital goods. Payments for imports in February rose to $5.41 billion, up from $5.35 billion in the same period last year.
This annual growth rate, however, was slower than the 10.2 percent in February 2015 and 30.8 percent in January.
Increased imports of the following commodities were seen in February 2016: telecommunication equipment and electrical machinery, industrial machinery and equipment, medicinal and pharmaceutical products, transport equipment, miscellaneous manufactured articles, other food and live animals, as well as plastics in primary and non-primary forms.
Decreased inbound shipments, on the other hand, were seen in the following commodity groups: mineral fuels, lubricants and related materials; electronic products; iron and steel.
Purchases of capital goods made up 39 percent of total imports for February, payments for which rose by 57.5 percent year-on-year to $2.16 billion from $1.37 billion last year.
Imports of consumer goods increased 26.3 percent to $934.2 million in February 2016 as higher spending was observed for both durable goods and non-durable goods during the period.
Cumulative imports from January to February 2016 were valued at $12.24 billion, up by 15.8 percent from $10.56 billion in the same period last year.
In terms of destination, China remained as the country’s top source of imports accounting for 16.7 percent of total payments during the period. Japan came second with 12.6 percent share, followed by the United States with 9.5 percent.
The growth in February imports is an indication of sustained strong domestic demand, according to the National Economic and Development Authority (NEDA).
“This growth indicates that amid a global economic slowdown, domestic demand, especially investments, remains strong. This will likely continue to drive imports growth within the short term,” said Socioeconomic Planning and NEDA director general Secretary Emmanuel Esguerra.
NEDA notes that among selected Asian economies, only the Philippines registered positive imports growth in February. Thailand, South Korea and China registered the steepest declines.
NEDA said the continued momentum in the importation of capital goods reflects the country’s attractiveness as an investment location, particularly in the manufacturing sector.
“This also indicates a robust economic activity that is primarily supported by the country’s strong macroeconomic performance. The robustness of growth is reflected in the continuous upgrade and affirmation of the country’s investment grade rating since 2013,” said Esguerra.
