June imports up 15.4%

Imports jumped for the fourth straight month in June, with year-on-year growth in the value of goods from abroad the fastest in the region.

Preliminary Philippine Statistics Authority (PSA) data released Thursday showed that merchandise imports grew by 15.4 percent to $6.9 billion in June from $5.9 billion a year ago.

The growth during the month was, however, slower than the increases of 39.3 percent a month ago and 23 percent in the same month last year, PSA data showed.

First-half imports hit $38.7 billion, up 17.7 percent from $32.9 billion in 2015.

“This performance shows the strength of domestic demand in the country, particularly in consumption and investment, as reflected by the latest real gross domestic product (GDP) growth of 7 percent in the second quarter,” Economic Planning Secretary Ernesto M. Pernia said in a statement.

The National Economic and Development Authority (Neda) said the increase in shipments from overseas in June outpaced those in Vietnam (1.9 percent), Malaysia (-1 percent), Indonesia (-6.8 percent), India (-7.3 percent), China (- 8.4 percent), and Thailand (-10.1 percent).

The value of capital goods imports climbed 64.6 percent to $2.2 billion last June, which “bodes well for the economy as it signals robust investment activity in industry and services,” said Pernia, who is also Neda Director General.

Payments for imported consumer goods rose 32.6 percent to $1.2 billion, as Neda noted higher spending on durable goods, especially vehicles, and nondurable goods like food and live animals.

“The trend of imports growth is expected to remain positive, albeit at a slightly lower pace due to a relatively weak outlook for electronics exports, which will affect the importation of electrical equipment. However, strong construction activity will continue to boost spending on durable equipment and capital goods,” Pernia said.

In June, import growth outpaced the 7.5-percent year-to-date drop in exports. The country posted a balance in trade deficit of $11.9 billion in the first semester.