January to August total trade stands at $55.590 billion

Total external trade in goods for January to August 2005 amounted to $55.590 billion, a 1.8  percent growth from $54.615 billion during the same period of the previous year. Expenditures for total foreign-made merchandise slightly dropped by 0.2 percent to $29.230 billion from $29.292 billion.On the contrary, exports registered a year-on-year increment of 4.1 percent to aggregate dollar revenue of $26.360 billion from $25.323 billion last year. Balance of trade in goods (BOT-G) deficit for the Philippines for the first seven months of 2005 reached $2.871 billion, lower compared to last year’s deficit of $3.969 billion.

Figure 1A. Philippine Trade Performance in January - August :2004 and 2005
(F.O.B. Value in Million US Dollar)
 
 

Figure 1B. Philippine Trade Performance in August :2004 - 2005
(F.O.B. Value in Million US Dollar)
 
 

August imports register 10.1 percent increase

Total merchandise trade for August 2005 went up by 5.6 percent to $7.520 billion from  $7.118 billion during the same period a year earlier. Dollar-inflow generated by exports amounted to $3.458 billion, or 0.8 percent higher than last year’s $3.430 billion. On the other hand, foreign bill on imported goods increased by a double-digit figure at 10.1 percent to $4.061 billion from $3.688 billion. The  BOT-G registered a deficit of $603 million, higher compared to last year’s deficit of $258 million.

Electronic products account for 43.1 percent of import bill

Accounting for 43.1 percent of the total aggregate import bill, payments for electronic products amounted to $1.750 billion or a decline of 4.5 percent over last year’s figure of $1.832 billion. Compared to the previous month’s level, purchases went up by 2.8 percent from $1.702 billion.

Imports of mineral fuels, lubricants and related materials in August ranked second with 16.4 percent share. Expenditures at $665.75 million, registered a 55.2 percent rise over the previous year’s level of $428.83 million as world prices and volume of imported petroleum, diesel and fuel oils went up.

Industrial Machinery and Equipment, contributing 4.4 percent to the  total bill, was RP’s third top import for the month with payments at $179.59 million from last year’s $130.78 million. The double-digit  increase of 37.3 percent was due to the high value of imports on parts of specialized machinery and equipment.

Transport Equipment, the fourth top import was worth $121.26 million, or an increment of 27.6 percent from $95.03 million a year ago. This was brought about by importations made on components, parts and accessories of motor vehicles.

Expenditures for iron and steel, with a 2.9 percent share, was up by 40.0 percent to $118.93 million from $84.94 million in August 2004. The positive growth was mainly attributed to the importation of semi-finished product of alloy and flat roled products of steel.

Cereals and cereal preparations, accounting for 2.4 percent of the total imports, showed an increase of 0.5 percent with foreign bill amounting to $99.12 million from $98.63 million last year. 

Rounding up the list of the top imports for August 2005 were textile yarn, fabrics, made-up articles and related products, $90.63 million, where higher value in the importation of fabrics and yarns contributed the growth of 15.5 percent. The other top imports were telecommunication equipment and electrical machinery, $81.11 million as higher values were noted in the importation of electrical apparatus; plastics in primary and non-primary forms, $80.0 million; and organic and inorganic chemicals, $73.55 million. Bigger importation of anhydrous ammonia and natural sodium carbonate recorded during the month, primarily contributed to the 11.4 percent increase in organic and inorganic chemicals.

Aggregate payment for the country’s top ten imports for August 2005 reached $3.260 billion or 80.3 percent of the total bill.

Figure 2. Philippine Top Imports in August 2004 and 2005
(F.O.B. Value in Million US Dollar)
 

Raw materials and intermediate goods account for 37.6 percent of the total imports

Payments in August for raw materials and intermediate goods accounted for 37.6 percent share as importation fell by 6.4 percent to $1.529 billion from last year’s figure of $1.632 billion. Semi-processed raw materials got the biggest share of 34.9 percent and valued at $1.417 billion.

Capital goods comprising 35.5 percent of the total imports, was up by 16.3 percent year-on-year to $1.443 billion from $1.241 billion. The major share went to telecommunication equipment and electrical machinery with a 20.3 percent share of the total imports and valued at $824.18 million.

Expenditures for mineral fuels, lubricants and related materials grew   by 55.2 percent to $665.76 million from $428.83 million during the same period of 2004.

Purchases of consumer goods, amounted to $322.68 million, an increase of 16.2 percent from $277.66 million in August 2004, while special transactions decreased by 6.6 percent to $101.02 million from $108.10 million.

Figure 3. Philippine Imports by Major Type of Goods in August: 2004 and 2005
 

United States corners 17.1 percent of august import bill

Imports from US accounting for 17.1 percent of the total import bill, slightly grew by 0.5 percent to $694.58 million from $690.99 million during the same period of 2004. Exports to US, amounted to $691.86 million yielding a two-way trade value of $1.386 billion and a trade deficit for RP placed at $2.73 million.

Japan, the country’s second biggest source of imports for August with a 15.8 percent share, reported shipments billed at $643.60 million against export earnings of $472.06 million. Total trade amounted to $1.116 billion, with a trade deficit registered at $171.54 million.

Saudi Arabia followed as the third biggest source of imports. With payments worth $338.00 million, imports accelerated by 116.8 percent from $155.93 million, while revenue from RP’s exports reached $2.75 million resulting to a total trade value of $340.75 million and a $335.24 million deficit for Philippines.

Other major sources of imports for the month of August were Singapore, $301.94 million; Taiwan, $281.61 million; People’s Republic of China, $264.83 million; Republic of Korea, $200.53 million; Hong Kong, $177.58 million; Malaysia, $134.59 million; and Thailand, $130.08 million.

Payments for imports from the top ten sources for the month amounted to $3.167 billion or 78.0 percent of the total.

Figure 4. Philippine Imports by Country in August: 2005
 

Technical Notes

Adjustments on electronics import statistics are based on approved valuation methodology as per NSCB Resolution No. 8 Series of 2005.

Source:   National Statistics Office
                 Manila, Philippines