JANUARY TO AUGUST 2008 TOTAL TRADE STANDS AT $74.850 BILLION

Total external trade in goods for January to August 2008 reached $74.850 billion, a 9.3 percent increment from $68.505 billion during the 8-month period in 2007. This is due to the 13.8 percent growth of the total imports to $40.422 billion from $35.534 billion during the 8-month period in 2007. On the other hand, total exports posted a growth of 4.4 percent for January to August 2008 to aggregate dollar revenue of $34.428 billion from $32.970 billion in the same period last year. Balance of trade in goods (BOT-G) during the 8-month period in 2008 registered a deficit of $5.994 billion from $2.564 billion deficit in the same period last year.  

Figure 1A  Philippine Trade Performance in January - August : 2007 and 2008
(F.O.B. Value in Million US Dollar)  
 

Figure 1B  Philippine Trade Performance in August : 2007 and 2008
(F.O.B. Value in Million US Dollar)

AUGUST 2008 IMPORTS UP BY 1.1 PERCENT

Total merchandise trade for August 2008 rose by 3.6 percent to $9.435 billion from $9.108 billion in August 2007. Exports receipts in August 2008 totaled to $4.393 billion, up by 6.6 percent from last year’s $4.121 billion. The country’s merchandise imports, on the other hand, increased by a measly 1.1 percent to $5.042 billion from $4.987 billion in August 2007. The balance of trade in goods   (BOT-G) in August 2008 recorded a deficit of $649.00 million from $865.00 million deficit in the same period last year.

ELECTRONIC PRODUCTS ACCOUNT FOR 33.0 PERCENT OF IMPORT BILL

Accounting for 33.0 percent of the aggregate import bill, payments for Electronic Products amounted to $1.664 billion fell by 26.5 percent over last year's figure of $2.264 billion.  It likewise decreased by 4.6 percent from $1.745 billion recorded in July 2008. This is due to the declines in the importation ofComponents/Devices (Semiconductors) with a share of 25.6 percent, down by 30.1 percent to $1.288 billion from $1.844 billion in August 2007.

Imports of Mineral Fuels, Lubricants and Related Materials in August 2008 ranked second with 20.2 percent share and posted a growth of 6.1 percent to $1.019 billion over the previous year’s level of $960.95 million.

Cereals and Cereal Preparations, contributing 6.8 percent to the total import bill, was the RP’s third top import for the month with payments placed at $340.74 million from last year’s $103.11 million or an increase of 230.5 percent.   This was due to the increase in the importation of rice.

Transport Equipment, accounting for a 6.0 percent of the total imports, ranked fourth as foreign bill amounted to $304.50 million, up by 42.7 percent from $213.46 million last year.   

Industrial Machinery and Equipment ranked fifth recorded a share of 4.3 percent at $217.48 million worth of imports, went up by 22.9 percent from its year ago level of $176.98 million. 

Iron and Steel, ranked sixth comprising 2.6 percent of the total imports registered $129.44 million worth of imports; rose by 64.8 percent from its year ago level of $78.57 million.

Rounding up the list of the top ten imports for August 2008 were Organic and Inorganic Chemicals,$123.62 million; Plastics in Primary and Non-Primary Forms with $98.97 million worth of imports; Metal Products, $71.52 million; and Telecommunication Equipment and Electrical Machinery,$71.31 million.

Aggregate payment for the country’s top ten imports for August 2008 reached $4.041 billion or 80.2 percent of the total import bill.

Figure 2  Philippine Top Six Imports in August : 2007 and 2008
(F.O.B. Value in Million US Dollar)
  

RAW MATERIALS AND INTERMEDIATE GOODS ACCOUNT FOR 34.7 PERCENT OF THE TOTAL IMPORTS

Accounting for 34.7 percent of the total imports, payments in August 2008 for Raw Materials and Intermediate Goods amounted to $1.751 billion or 17.6 percent decline over last year's figure of $2.126 billion.  Compared to the previous month’s level, purchases likewise fell by 6.6 percent from $1.876 billion. Semi-Processed Raw Materials had the biggest share of 32.2 percent and valued at $1.624 billion.

Capital Goods, which comprised 29.3 percent of the total imports, went up by 2.2 percent year-on-year, to $1.475 billion from $1.443 billion. The major share went to Telecommunication Equipment and Electrical Machinery with 14.6 percent share of the total imports in August 2008 and billed at $735.37 million.

Mineral Fuels, Lubricants and Related Materials with 20.2 percent share, increased by 6.1 percent to $1.019 billion from $960.95 million in August 2007.  

Purchases of Consumer Goods amounted to $729.45 million or an increase of 80.1 percent from $404.93 million in August 2007, while Special Transactions likewise grew by 28.8 percent to $67.02 million from $52.03 million in August 2007.

Figure 3  Philippine Imports by Major Type of Goods in August: 2007 and 2008
 

UNITED STATES OF AMERICA CORNERS 11.5 PERCENT OF AUGUST 2008 IMPORT BILL 

United States of America (USA) was the country’s biggest source of imports for August 2008 with 11.5 percent share of the total import bill down by 14.7 percent to $580.52 million from $680.54 million in August 2007.  Exports to United States of America (USA) amounted to $653.31 million, yielding a two-way trade value of $1.234 billion and a trade surplus for RP at $72.79 million.

Japan followed as the second biggest source of imports with 11.4 percent share, recording payments worth $576.10 million, declined by 2.3 percent from $589.57 million in August 2007.  Revenue from RP’s exports to Japan, on the other hand, reached $707.87 million, generating a total trade value of $1.284 billion and $131.76 million trade surplus for the Philippines.

Singapore came third; accounting for 9.1 percent share of the total import bill in August 2008, fell by 21.4 percent to $457.55 million from $581.82 million during the same month in 2007. Exports toSingapore amounted to $264.61 million resulting to a total trade value of $722.16 million and a trade deficit of $192.94 million.

Taiwan settled fourth, accounting for 6.8 percent share of the total import bill in August 2008, declined by 19.0 percent to $343.51 million from $423.89 million during the same month in 2007. Exports toTaiwan amounted to $185.95 million resulting to a total trade value of $529.46 million and a trade deficit of $157.56 million for the Philippines.

Other major sources of imports for the month of August 2008 were People’s Republic of China,$328.78 million; Republic of Korea, $305.91 million; Thailand, $297.18 million; Saudi Arabia, $276.10 million; Vietnam, $262.76 million; and , Malaysia $238.39 million.

Payments for imports from the top ten sources for August 2008 amounted to $3.667 billion or 72.7 percent of the total.

Figure 4  Philippine Imports by Country in August: 2008
  

Technical Notes:

1. Adjustments on electronic import statistics are based on the transactions that pass through the Automated Cargo Operating System (ACOS) of the Bureau of Customs (BOC).

2. Starting on January 2007 Press Release, analysis and tables are based on 2004 Philippine Standard Commodity Classification (PSCC) groupings.  This 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.

Source:   Foreign Trade Statistics Section
               Industry and Trade Statistics Department
               National Statistics Office
               Manila, Philippines