Imports in May grew the fastest in over 22 years, which the government said Tuesday reflected robust domestic conditions conducive to investments.
A preliminary Philippine Statistics Authority (PSA) report showed that the value of imported goods that entered the country last May jumped 39.3 percent to $6.7 billion from $4.8 billion a year ago.
The imports growth in May was the fastest since the 39.45-percent increase posted in January 1994 as well as reversed the 4.6-percent year-on-year drop during the same month last year, data from the PSA’s trade statistics division showed.
Electronic products imports—usually components and semiconductors assembled in the country, then re-exported—climbed 44.5 percent to $1.7 billion, a reversal of last year’s 13-percent decline.
Last May, payments for imported transport equipment rose 108.6 percent year-on-year; for power generating and specialized machinery, up 96.7 percent; for industrial machinery and equipment, up 79.5 percent; for plastics, up 79.3 percent; for telecommunication equipment and electrical machinery, up 77.7 percent; for miscellaneous manufactured articles, up 45 percent; for other food and live animals, up 33.7 percent; and for iron and steel, up 28.3 percent.
Imports of mineral fuels and lubricants, however, contracted by 24.9 percent that month.
In May, only the Philippines posted double-digit imports growth among 11 selected Asian countries, according to the National Economic and Development Authority (Neda).
“The bullish performance of imports is a clear signal that our domestic economic conditions remain robust despite the weak global economy. With its current upward trend, we expect investments and consumption to drive growth for the rest of the year,” Socioeconomic Planning Secretary Ernesto M. Pernia said.
“With the sluggish import activities in the region, we must focus on fast-tracking the country’s infrastructure development to support the growth of our economy and improve our absorptive capacity for investments,” added Pernia, who is also Neda Director General.
Neda said capital goods imports grew 99.9 percent year-on-year in May, while those of consumer products increased 47.2 percent, “driven by the higher demand for passenger cars and motorized cycles during the period.”
China remained the Philippines’ top source of imports in May, with a 20.4-percent share.
At the end of the first five months, imports grew 18.2 percent to $31.9 billion from nearly $27 billion in the same period last year.
The Duterte administration had targeted merchandise imports to grow by 7 percent this year.