MANILA, Aug 28 (Reuters) – Philippine imports in June rose
13.3 percent from a year earlier, the fastest since August last
year helped by a rebound in electronics shipments and delivery
of Boeing jets ordered by the country’s flag carrier
Philippine Airlines.
Electronics imports registered its first gain in 13 months,
climbing 27.1 percent year on year.
The Southeast Asian country posted a trade deficit of $787
million in June, bringing the six-month trade deficit to $4.0
billion, the statistics office said on Tuesday.
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KEY POINTS:
June 2012 May 2012 June 2011
Imports (bln) $5.10 $5.39 $4.50
yr/yr chg (pct) 13.3 10.1 6.6
mth/mth chg (pct) -5.3 12.8 -7.9
Electronics (bln) $1.46 $1.44 $1.15
yr/yr chg (pct) 27.1 -15.3 -20.7
mth/mth chg (pct) 1.2 9.3 -32.5
Exports (bln) $4.31 $4.93 $4.14
Trade balance (mln) -$787 -$454 -$369
NOTE: Some previous numbers have been revised
COMMENTS:
RADHIKA RAO, ECONOMIST, FORECAST PTE, SINGAPORE
“Apart from Japan-induced base-effects that propped the
headline modestly, sharp jump in capital goods and higher
consumer goods imports are the primary drivers of the strong
year-on-year number.
“Peso gains and pullback in the global crude prices mellowed
the fuel import bill. Outlook for the trade sector is not
without risks as most of the key trading partners face growth
headwinds – Japan’s external sector in particular has been
running out of steam since Q2.
“Private industry players have also lowered the revenue
outlook for the semiconductor sector and could weigh on
Philippine exports in the coming months. Strong peso is also
another additional burden.”
BACKGROUND:
– The United States was the country’s top import source in
June, accounting for 15.7 percent of total purchases, followed
by Japan with 11.9 percent, and China with 10.7 percent.
– Imports from Eastern Asia, the top import source by
economic bloc accounting for 38.2 percent of total, were up 25.4
percent in June from a year earlier. Imports from Southeast Asia
and the European Union, the second and third top economic blocs,
were up 16.6 percent and up 29 percent, respectively.
– The government has forecast exports would grow 10 percent
this year, but it has revised down its 2012 imports forecast to
12 percent from 15 percent as manufacturers feel the brunt of
the global economic slowdown.
– The Semiconductors and Electronics Industries in the
Philippines Inc cut its export growth forecast this year to 5-7
percent from 10-15 percent on slowing external
demand.[D:nL3E8I318Q]
– Apart from electronic parts and fuel, other top imports
are cereals such as rice, electrical and industrial machinery,
transport equipment, iron, steel and metal scraps.
– The Philippine central bank, which next meets on September
13 to review policy, cut its overnight borrowing rate by a
combined 75 basis points in January, March and July to a new low
of 3.75 percent to fortify the country’s economic buffers.
– Philippine economic growth likely lost momentum in the
second quarter from the previous three months, according to a
Reuters poll, dragged by weak farm output and a slump in
electronics exports as global demand slackened.
– The country’s economic managers believe this year’s
economic growth target of 5 to 6 percent remains achievable.
Growth last year was 3.7 percent, below the government’s
forecast.
(Reporting by Erik dela Cruz and Karen Lema; Editing by
Rosemarie Francisco)
