JANUARY TO DECEMBER 2008 TOTAL TRADE STANDS AT $105.661 BILLION

Total external trade in goods for January to December 2008 reached $105.661 billion, a 0.3 percent decline from $105.979 billion registered in 2007. This was due to the slower 2.0 percent growth of the total imports to $56.636 billion from $55.514 billion during the 12-month period in 2007. On the other hand, total exports posted a negative growth of 2.9 percent for January to December 2008 to aggregate dollar revenue of $49.025 billion from $50.466 billion in the same period last year. Balance of trade in goods (BOT-G) during the 12-month period in 2008 registered a deficit of $7.611 billion from $5.048 billion deficit in the same period last year.  

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

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

DECEMBER 2008 IMPORTS FELL BY 34.2 PERCENT

Total merchandise trade for December 2008 declined by 37.1 percent to $5.966 billion from $9.483 billion in December 2007. Exports receipts in December 2008 totaled to $2.675 billion, a decrease of 40.3 percent from last year's $4.482 billion. Similarly, the country's merchandise imports dropped by 34.2 percent to $3.291 billion from $5.001 billion in December 2007. Thus, the balance of trade in goods   (BOT-G) in December 2008 recorded a $617 million deficit from $519 million in the same period last year.

ELECTRONIC PRODUCTS ACCOUNT FOR 34.5 PERCENT OF IMPORT BILL

Accounting for 34.5 percent of the aggregate import bill, payments for Electronic Products(including consigned and direct importation using the expanded coverage of electronic products) in December 2008 amounted to $1.137 billion. It fell by 46.1 percent over last year's figure of $2.109 billion.  On a monthly basis, it fell by 12.8 percent from $1.303 billion recorded in November 2008. Among the major groups of electronic products, Components/Devices (Semiconductors) having the biggest share of 27.4 percent, decelerated by 46.6 percent to $901.73 million from $1.689 billion in December 2007.

 Imports of Mineral Fuels, Lubricants and Related Materials in December 2008 ranked second with 20.0 percent share and posted a negative growth of 35.5 percent to $659.36 million over the previous year's level of $1.023 billion.

Industrial Machinery and Equipment, was the RP's third top import for the month with 5.5 percent share to total imports valued at $181.30 million. A negative growth was reported at 20.4 percent from previous year level of $227.89 million.   

Transport Equipment, contributing 5.4 percent to the total import bill, was the RP’s fourth top import for the month with payments placed at $176.90 million from last year�s $228.09 million or a decrease of 22.5 percent. 

Fifth in rank and with 3.4 percent share to the total imports, Cereals and Cereal Preparations recorded $112.63 million worth of imports higher by 90.0 percent from its year ago level of $59.29 million.

Organic and Inorganic Chemicals ranked sixth, comprising 2.3 percent of the total imports registered $75.51 million worth of imports, declined by 30.7 percent from its year ago level of $108.90 million.

Rounding up the list of the top ten imports for December 2008 were Iron and Steel,accounting for $74.70 million; Telecommunication Equipment and Electrical Machinery (including telecommunications and sound recording and reproducing apparatus and equipment) amounting to $51.49 million; Metalliferous Ores and Metal Scrap, $48.59 million; and Plastics in Primary and Non-Primary Forms, $48.25 million.

Aggregate payment for the country’s top ten imports for December 2008 reached $2.565 billion or 77.9 percent of the total import bill.

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

RAW MATERIALS AND INTERMEDIATE GOODS ACCOUNT FOR 41.6 PERCENT OF THE TOTAL IMPORTS

Accounting for 41.6 percent of the total imports, payments in December 2008 for Raw Materials and Intermediate Goods amounted to $1.369 billion or 31.7 percent decline over last year's figure of $2.003 billion.  Compared to the previous month's level, purchases also went down by 0.9 percent from $1.381 billion. Semi-Processed Raw Materials had the biggest share of 35.3 percent and valued at $1.163 billion.

Capital Goods, which comprised 27.2 percent of the total imports, went down by 40.1 percent year-on-year, to $894.47 million from $1.493 billion.

Mineral Fuels, Lubricants and Related Materials with 20.0 percent share, decreased by 35.5 percent to $659.36 million from $1.023 billion in December 2007.  

Purchases of Consumer Goods amounted to $339.04 million or a decrease of 18.7 percent from $417.00 million in December 2007, while Special Transactions dropped by 53.8 percent to $29.88 million from $64.70 million in December 2007.

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

IMPORTS FROM THE UNITED STATES OF AMERICA ACCOUNTS FOR 15.0 PERCENT

United States of America (USA) was the country’s biggest source of imports for December 2008 with 15.0 percent share of the total import bill, lower by 28.1 percent from $686.66 million in December 2007 to $493.51 million.  Exports to USA amounted to $574.34 million, yielding a two-way trade value of $1.068 billion and a trade surplus for RP of $80.83 million.

Japan, the second biggest source of imports with 12.0 percent share, recorded payments worth $393.24 million, a decline of 40.1 percent from $656.60 million in December 2007.  Revenue from RP's exports to Japan, on the other hand, reached $457.68 million, generating a total trade value of $850.92 million and $64.44 million trade surplus for the Philippines.

People's Republic of China, came third, accounting for 9.9 percent share of the total import bill in December 2008 which declined by 6.0 percent to $325.00 million from $345.84 million during the same month in 2007. Exports to People's Republic of China amounted to $216.76 million resulting to a total trade value of $541.76 million and a trade deficit of $108.24 million.

Singapore settled fourth; accounting for 9.7 percent share of the total import bill in December 2008, a decrease of 35.4 percent to $320.35 million from $495.49 million during the same month in 2007. Exports to Singapore amounted to $117.20 million resulting to a total trade value of $437.55 million and a trade deficit of $203.14 million.

Other major sources of imports for the month of December 2008 were Taiwan, $263.08 million; Saudi Arabia, $174.80 million; Thailand, $155.01 million; Republic of Korea, $144.20 million; Indonesia, $112.60 million; and Malaysia, $106.48 million.

Payments for imports from the top ten sources for December 2008 amounted to $2.488 billion or 75.6 percent of the total.

Figure 4  Philippine Imports by Country in December: 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 with the January 2007 Press Release, analysis and tables are based on the 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.

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