MANILA: Philippine imports advanced at a much slower pace in February than in January, reflecting sharp drops in mineral fuels and electronic imports.
“The total imported goods by the country for the month of February 2016 amounted to $5.414 billion, an increase of 1.2 percent from $5.351 billion recorded during the same period a year ago.
Imports grew by 30.8 percent to $6.825 billion in January.
Nicholas Antonio T. Mapa, associate economist at the Bank of the Philippine Islands (BPI), attributed the drop in February imports to fewer shipments of semi-processed materials.
“The drag on import growth were less shipments of raw materials, in particular semi-processed materials used in the manufacture of electronics equipment,” he said.
“This will most probably be due to the fact that demand for our export products may be waning on depressed global demand. The contraction in mineral fuels was expected, however, as crude oil prices remain subdued compared to year-ago levels” he added.
PSA data showed imports of mineral fuels, lubricants, and related materials declined by 34.8 percent, while electronics fell by 14.8 percent.
“The balance of trade in goods for the Philippines in February 2016, registered a deficit of $1.104 billion, higher than the $837.37 million trade deficit in the same month last year,” the PSA noted.
We may see another month of weak importation as capital goods growth is unable to make up for the slowdown in mineral fuels and the slowing of raw materials as demand for our electronics exports slips on depressed global growth.
