JANUARY TO AUGUST 2006 TOTAL TRADE STANDS AT $64.816 BILLION

Total external trade in goods for January to August in 2006 reached $64.816 billion representing a 13.3 percent increment from $57.224 billion during the same period a year earlier. Similarly, total foreign-made merchandise grew by 10.2 percent to $33.858 billion from $30.737 billion. Exports on the other hand, registered a positive rate at 16.9 percent to aggregate dollar revenue of $30.958 billion from $26.487 billion of the previous year. Balance of trade in goods (BOT-G) deficit for the Philippines reached $2.900 billion, lower compared to last years deficit of $4.250 billion.

Figure 1A  Philippine Trade Performance in January - August :2005 and 2006
(F.O.B. Value in Million US Dollar)
 

Figure 1B  Philippine Trade Performance in August : 2005 and 2006
(F.O.B. Value in Million US Dollar)
 
 

AUGUST IMPORTS REGISTER 15.3 PERCENT INCREASE

Total merchandise trade for August 2006 went up by 18.0 percent to $9.150 billion from $7.752 billion during the same period last year. Dollar-inflow generated by exports reached $4.265 billion, or 21.4 percent higher than last years $3.513 billion. In the same way, expenditures for imported goods gained by 15.3 percent to $4.886 billion from $4.239 billion. The balance of trade in goods   (BOT-G) registered a deficit at $621 million, lower from last years deficit of $726 million.

 ELECTRONIC PRODUCTS ACCOUNT FOR 44.6 PERCENT OF IMPORT BILL

Accounting for 44.6 percent of the aggregate import bill, payments for Electronic Products amounted to $2.179 billion or a 12.9 percent growth over last year's figure of $1.930 billion. Compared to the previous months level, purchases grew by 11.6 percent from $1.953 billion. Among the major groups of electronic products.  Components/Devices (Semiconductors) got the biggest share at 36.1 percent and recorded an increase of 16.7 percent to $1.765 billion from $1.512 billion during the same month in 2005.

Imports of Mineral Fuels, Lubricants and Related Materials in August ranked second with 19.3 percent share and posted an increase of 41.8 percent to $944.16 million over the previous years level of $665.72 million.  The growth was due to the increase in the expenditures on petroleum, gas and diesel oils.

Industrial Machinery and Equipment, accounting for a 3.6 percent of the total imports, ranked third as foreign bill amounted to $176.75 million, or a decline of 1.8 percent from $179.92 million last year.

Transport Equipment, contributing 3.5 percent to the total bill, was RPs fourth top import for the month with payments placed at $172.1 million from last years  $121.30 million or a year-on-year growth at 41.9 percent. The gain was mainly brought about by the acquisition of airplanes and other aircrafts, and the rise in the value of  imports on passenger cars, other public transport type passenger motor vehicles, components, parts and accessories of other motorcycles and airplanes/helicopters.

Iron and Steel, comprising 2.2 percent of the total imports, registered a $106.64 million worth of imports while Cereals and Cereal Preparations recorded a share of 2.1 percent or $103.99 million worth of imports.

Rounding up the list of the top imports for August 2006 were Organic and Inorganic Chemicals, $95.79 million; Textile Yarn, Fabrics, Made-Up Articles and Related Products, $90.23 million; Metalliferous Ores and Metal Scraps, $85.91 million; and Plastics in Primary and Non-Primary Forms, $85.16 million.

Aggregate payment for the countrys top ten imports for August 2006 reached $4.040 billion or 83.0 percent of the total bill.

Figure 2  Philippine Top Imports in August : 2005 and 2006
(F.O.B. Value in Million US Dollar)
 

RAW MATERIALS AND INTERMEDIATE GOODS ACCOUNT FOR 40.2 PERCENT OF THE TOTAL IMPORTS

Payments in August for Raw Materials and Intermediate Goods accounted for 40.2 percent as importation moved up by 15.0 percent to $1.964 billion from last years figure of $1.708 billion. Semi-Processed Raw Materials got the biggest share of  36.7 percent and valued at $1.793 billion.

Capital Goods comprising 31.5 percent of the total imports, inched-up by 6.5 percent year-on-year to $1.538 billion from $1.443 billion. The major share went to Telecommunication Equipment and Electrical Machinery with a 18.1 percent share of  the total imports and billed at $883.27 million.

Expenditures for Mineral Fuels, Lubricants and Related Materials grew by 41.8 percent to $944.16 million from $665.72 million during the same period of 2005.

Purchases of Consumer Goods amounted to $363.79 million, a growth of 12.8 percent from $322.67 million in August 2005, while Special Transactions dropped by 22.9 percent to $76.08 million from $98.69 million.

Figure 3  Philippine Imports by Major Type of Goods in August: 2005 and 2006

UNITED STATES CORNERS 15.3 PERCENT OF AUGUST IMPORT BILL

Imports from United States (US) accounting for 15.3 percent of the total import bill, dropped by 5.2 percent to $747.71 million from $788.33 million during the same period of 2005. Exports to US amounted to $808.54 million yielding a two-way trade value of $1.556 billion and a trade surplus for RP placed at $60.82 million.

Japan, the countrys second biggest source of imports for August with a 12.1 percent share, reported shipments billed at $591.98 million against exports earnings of $632.04 million. Total trade amounted to $1.224 billion, with a trade surplus registered at $40.06 million.

Saudi Arabia followed as the third biggest source of imports with a 9.2 percent share, recorded payments worth $450.32 million or a year-on-year growth of 33.2 percent. The growth was due to the increase in the value of imports on petroleum oils.  Revenue from RPs exports, on the other hand, reached $3.75 million resulting to a total trade value of $454.07 million and a $446.57 million deficit for Philippines.

Other major sources of imports for the month of August were Taiwan, $417.34 million; Singapore, $377.95 million; Republic of Korea, $332.16 million; Peoples Republic of China, $309.38 million; Thailand, $209.32 million; Malaysia, $197.02 million; and Hong Kong, $174.24 million.

Payments for imports from the top ten sources for the month amounted to $3.807 billion or 78.0 percent of the total.

Figure 4  Philippine Imports by Country in August: 2006
 

Technical Notes

1. Adjustments on electronics import statistics are based on the approved valuation methodology as per NSCB   Resolution No. 8 Series of 2005 and the inclusion of transactions that passes through Automated Cargo Operating System (ACOS).

2. Analysis and Tables 1 to 5 in this Press Release is based on data using the 1993 Philippine Standard Commodity Classification (PSCC) groupings (as amended in 1999).

3. Starting with the July 2006 series of Foreign Trade Statistics (FTS), additional tables (Tables 6 and 7) using the 2004 PSCC groupings are provided.

4. The adoption of the 2004 PSCC is in compliance with NSCB Resolution No. 03, Series of 2005 entitled " Approving and Adopting the 2004 Philippine Standard Commodity Classification"  by all concerned government agencies and instrumentalities.

5. In view of the adoption of the new classification system, the NSO shall issue two sets of detailed tables: 7-digit following the 1993 PSCC (as amended in 1999) and 10-digit using the 2004 PSCC simultaneously, until the December 2006 FTS. However, beginning January 2007 FTS, only the 2004 PSCC groupings will be released by NSO.

6. Detailed tables at commodity levels are available upon request from the NSO-Industry and Trade Statistics Department, 10 days after the monthly press release.

Source:   National Statistics Office
                 Manila, Philippines