January to December total trade stands at $86.131 billion

Total external trade in goods for January to December 2005 reached $86.131 billion, a 2.9  percent growth from $83.720 billion during the same period of the previous year. Expenditures for total foreign-made merchandise moved up by 2.0 percent to $44.910 billion from $44.039 billion. Similarly, exports registered a year-on-year increment of 3.9 percent to aggregate dollar revenue of $41.221 billion from $39.681 billion a year earlier. Balance of trade in goods (BOT-G) deficit for the Philippines was posted at $3.668 billion, lower compared to last year’s deficit of $4.359 billion.

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

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

December imports register 21.7 percent increment

Total merchandise trade for December 2005 went up by 19.2 percent to $7.801 billion from  $6.542 billion during the same period last year. Dollar-inflow generated by exports amounted to $3.827 billion, or 16.8 percent higher than last year’s $3.277 billion. On the other hand, foreign bill on imported goods accelerated by 21.7 percent to $3.974 billion from $3.265 billion. The  BOT-G registered a deficit of $147 million, a reversal compared to last year’s surplus of $13 million.

Electronic products account for 46.6 percent of import bill

Accounting for 46.6 percent of the total aggregate import bill, payments for electronic products at $1.850 billion, jumped by 22.9 percent over last year’s figure of $1.505 billion. Compared to the previous month’s level, purchases grew by 2.4 percent from $1.807 billion.

Total annual payments from electronic products for 2005 was $20.522 billion. It registered a decrease of 7.7 percent over the 2004 expenses.

Imports of mineral fuels, lubricants and related materials in December ranked second with 11.9 percent share. Expenditures at $474.28 million, recorded an increment of 28.6 percent  over the previous year’s level of $368.87 million as world prices of petroleum oils went up. During the twelve-month period, annual expenses reached $6.276 billion with a year-on-year growth of 33.2 percent.

Transport equipment, contributing 5.5 percent to the  total bill, was RP’s third top import for the month with payments at $218.96 million from last year’s $111.62 million. The gain was mainly brought about by the 96.2 percent rise in the value of imports on passenger cars, components, parts and accessories of airplanes/helicopters. Total yearly imports for this group was recorded at $1.684 billion. It posted an annual positive rate of 36.0 percent over the 2004 level.

Industrial machinery and equipment, the fourth top import was worth $148.02 million, or a growth of 18.8 percent from $124.58 million a year earlier. This was due to the high value of imports made on parts of machinery and mechanical appliances. Total annual costs of imports was posted at $1.803 billion with a 4.8 percent growth over the 2004 figure.

Expenditures for textile yarn, fabrics, made-up articles and related products, with a 2.0 percent share, had payments registered at $80.34 million from $73.53 million in December 2004. Higher value in the importation of knitted/crocheted fabrics mainly contributed the growth of 9.3 percent.

Telecommunication equipment and electrical machinery, accounted for 2.0 percent of the total imports, with foreign bill amounting to $79.22 million from $72.21 million last year. This can be attributed to the higher demand in electrical apparatus and connectors.

Rounding up the list of the top imports for December 2005 were iron and steel, $77.83 million; plastics in primary and non-primary forms, $68.97 million; organic and inorganic chemicals, $66.11 million and metalliferous ores and metal scrap $63.75 million. 

Aggregate payment for the country’s top ten imports for December 2005 reached $3.127 billion or 78.7 percent of the total bill.

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

Raw materials and intermediate goods account for 40.2 percent of the total imports

Payments in December for raw materials and intermediate goods accounted for 40.2 percent share as importation gained by 16.9 percent to $1.596 billion from last year’s figure of $1.365 billion. Semi-processed raw materials got the major share of 36.4 percent and valued at $1.447 billion. For the entire year, expenditure reached $18.284 billion, a decline of 7.4 percent.

Capital goods comprising 36.1 percent of the total imports, rose by 23.6 percent year-on-year to $1.436 billion from $1.161 billion. The biggest share went to telecommunication equipment and electrical machinery with a 19.9 percent share of the total imports and valued at $789.40 million. The annual expenses accounted for $15.829 billion or a 3.0 percent increase a year ago.

Expenditures for mineral fuels, lubricants and related materials picked up by 28.6 percent to $474.28 million from $368.87 million during the same period of 2004. Th yearly total was higher by 33.2 percent and was valued at $6.276 billion.

Purchases of consumer goods, amounted to $248.20 million, a decline of 6.8 percent from $266.27 million in December 2004, while special transactions advanced by 113.7 percent to $219.88 million from $102.91 million.

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

United States corners 18.4 percent of december import bill

Imports from US accounting for 18.4 percent of the total import bill, went up by 46.6 percent to $729.15 million from $497.29 million during the same period of 2004. Exports to US, amounted to $756.59 million yielding a two-way trade value of $1.486 billion and a trade surplus for RP placed at $27.43 million. Imports from US during the 12-month period registered a downfall of 3.6 percent at $7.970 billion.

Japan, the country’s second biggest source of imports for December with a 16.3 percent share, reported shipments billed at $647.07 million against export earnings of $646.56 million. Total trade amounted to $1.294 billion, with a trade deficit registered at $0.51 million. Total annual imports of goods from Japan was posted at $7.646 billion with a yaer-on-year negative growth of 0.4 percent.

Singapore followed as the third biggest source of imports. With payments worth $421.64 million, imports grew by 71.8 percent from $245.36 million, while revenue from RP’s exports reached $251.79 million resulting to a total trade value of $673.43 million and a $169.85 million deficit for Philippines.

Other major sources of imports for the month of December were People’s Republic of China, $256.48 million; Taiwan, $255.10 million; Saudi Arabia, $213.05 million; Republic of Korea, $196.76 million; Hong Kong, $154.03 million; Germany, $149.72 million; and Malaysia, $136.14 million.

Payments for imports from the top ten sources for the month amounted to $3.159 billion or 79.5 percent of the total.

Figure 4. Philippine Imports by Country in December: 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