Imports growth slows to 3.1% in April

MANILA, Philippines–Growth in goods imported by the country—a reliable forward-looking indicator for the economy’s performance—slowed in April, but officials remained confident of a recovery in the months ahead.

A contraction in imports of electronic products, which are in turn used as parts for goods that local firms eventually export, slightly offset increases in inward shipments of plastics, steel and mineral products, among others.

“Outside electronics, the other items were very strong. However, because [electronics] are a big contributor, the aggregate number was down,” Bank of the Philippine Islands lead economist Emilio Neri Jr. said in an interview.

The country’s import bill for April rose 3 percent to $5.3 billion, data from the Philippine Statistics Authority (PSA) showed. This expansion was slower than the 10.6-percent year-on-year increase in the previous month and the 7.6-percent growth in April 2013.

Imports of electronic products, which account for a fifth of total imports, shrank by 3.1 percent. Fuel imports, which account for over a quarter of the total, rose by 11.5 percent.

Gains were also noted in iron and steel, telecommunication equipment and electrical machinery, organic and inorganic chemicals, and other food and live animals imports. Declines were recorded in industrial machinery and transportation equipment.

Economic Planning Secretary Arsenio Balisacan said in a statement Wednesday that local airlines’ plans to acquire more aircraft should help provide a boost to imports numbers in the coming months.

Originally posted at 3:54 pm | Wednesday, June 25, 2014

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