The value of imported goods that entered the country last August slid 1.3 percent to $5.49 billion from $5.56 billion in the same month last year, Philippine Statistics Authority (PSA) data released Friday showed.
Economic Planning Secretary Arsenio M. Balisacan attributed the slower merchandise imports in August to “significant declines” in purchases of imported raw materials, intermediate goods, lubricants and mineral fuels.
The daytime truck ban, which stalled the movement of shipments to and from the country’s biggest seaport, was still being implemented in the city of Manila during that month. The truck ban was lifted in mid-September.
“Although relatively in better condition than last year, the gradual softening in imports has been observed since the 24.7-percent growth seen last January, steadily sliding to its slowest growth as of August this year” and offsetting the year-on-year increases in capital as well as consumer goods imports, said Balisacan, who is also director general of the National Economic and Development Authority (Neda).
In August, shipments of imported capital goods went up 3.1 percent while consumer products from abroad enjoyed a 13.8-percent increase to $766.2 million.
However, imports of semiconductor and electronic components—used in assembling electronic products, the country’s largest merchandise exports—declined at a faster rate of 15.4 percent $1.14 billion from $1.34 billion last year.
Imports of mineral fuels, lubricants and related materials, meanwhile, were down 2.6 percent last August. Still, import payments from January to August rose 4 percent to $42.45 billion from $40.81 billion in the same eight-month period of 2013.
Since exports grew 9.2 percent during the first nine months, the trade-in-goods deficit narrowed to $1.7 billion.
The Philippines’ leading sources of imported products last August were China, United States, Singapore, Taiwan, South Korea, Japan, Saudi Arabia, Thailand, France and Germany.
Balisacan said the government was keeping a close watch over both domestic and global demand for goods.
“Domestically, the recent slowdown in imports may reflect market sentiment of sluggish demand due to seasonal factors. But we remain vigilant should this sluggish growth in imports turn out to be a signal of a more pessimistic condition of the global economy, which may spill over locally,” he said.
But Balisacan said he was optimistic that the country’s imports would recover during the Christmas holiday season, during which trade volumes surge. “[M]erchandise imports could possibly pick up in the succeeding months as suggested by the inventory drawdown in the national accounts.”
The Neda chief also warned that the congestion at the ports remained a “big threat” to both exports and imports.