External Trade Performance : February 2006 (Preliminary)

January to February total trade stands at $13.803 billion

Total external trade in goods for January to February 2006 amounted to $13.803 billion representing an increment of 6.1 percent from $13.007 billion during the same period of the previous year.  Likewise, total foreign-made merchandise was up by 4.8 percent to $7.035 billion from $6.713 billion. Exports on the othet hand registered a positive year-on-year growth of 7.5 percent to aggregate dollar revenue of $6.769 billion from $6.294 billion last year. Balance of trade in goods (BOT-G) deficit for the Philippines reached $266 million, lower compared to last year’s deficit of $418 million.

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

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

February imports register 4.6 percent increase

Total merchandise trade for February 2006 grew by 9.5 percent to $6.803 billion from $6.211 billion during the same period a year ago. Dollar-inflow generated by exports amounted to $3.445 billion, or 14.8 percent higher than last year’s $3.000 billion. Similarly, expenditures for imported goods went up by 4.6 percent to $3.358 billion from $3.211 billion. The balance of trade in goods (BOT-G) registered a surplus at $88 million, a reversal from last year’s deficit of $211 million.

Electronic products account for 48.0 percent of import bill

Accounting for 48.0 percent of the total aggregate import bill, payments for electronic products amounted to $1.612 billion or a 1.1 percent fall over last year’s figure of $1.630 billion. Compared to the previous month’s level, purchases gained by 2.4 percent from $1.574 billion.

Imports of mineral fuels, lubricants and related materials in February ranked second with 15.6 percent share. Expenditures at $524.83 million, posted a 23.9 percent growth over the previous year’s level of $423.66 million as world prices of imported petroleum and gas oils as well as oils from bituminous minerals went up.

Industrial machinery and equipment, the third top import was worth $138.85 million, from $120.65 million a year earlier. The gain was mainly brought about by the 15.1 percent jump in the value of imports on parts of machinery and mechanical appliances.

Transport equipment, contributing 4.0 percent to the total bill, was RP’s fourth top import for the month with payments placed at $135.34 million or an increment of 65.6 percent from last year’s $81.74 million.

Cereals and cereal preparations, accounting for 2.6 percent of the total imports, ranked fifth as foreign bill amounted to $88.94 million, a double-digit increase of 37.4 percent from $64.72 million last year.

Expenditures for telecommunication equipment and electrical machinery, with a 1.7 percent share, dropped by 11.3 percent to $58.34 million from $65.77 million a year ago.

Rounding up the list of the top imports for February 2006 were textile yarn, fabrics, made-up articles and related products, $57.62 million. Higher value in the importation of knitted/crocheted fabrics and filament yarn mainly contributed the growth of 14.3 percent. Plastics in primary and non-primary forms, $56.41 million; organic and inorganic chemical, $52.36 million; and iron and steel, $51.56 million.

Aggregate payment for the country’s top ten imports for February 2006 reached $2.776 billion or 82.7 percent of the total bill.

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

Raw materials and intermediate goods account for 39.4 percent of the total imports

Payments in February for raw materials and intermediate goods accounted for 39.4 percent as importation was reduced by 3.3 percent to $1.323 billion from last year’s figure of $1.368 billion. Semi-processed raw materials got the major share of 37.2 percent and valued at $1.249 billion.

Capital goods comprising 35.6 percent of the total imports went up by 8.8 percent year-on-year to $1.196 billion from $1.099 billion. The bigest share went to telecommunication equipment and electrical machinery with a 20.2 percent share of the total imports and billed at $676.69 million.

Expenditures for mineral fuels, lubricants and related materials improved by 23.9 percent to $524.83 million from $423.66 million during the same period of 2005.

Purchases of consumer goods, amounted to $246.36 million, a decline of 5.8 percent from $261.39 million in February 2005, while special transactions increased by 14.4 percent to $67.49 million from $58.99 million.

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

United States corners 17.1 percent of february import bill

Imports from United States accounting for 17.1 percent of the total import bill, went down by 9.2 percent to $573.56 million from $631.90 million during the same period of 2005. Exports toUS, amounted to $656.60 million yielding a two-way trade value of $1.230 billion and a trade surplus for RP placed at $83.04 million.

Japan, the country’s second biggest source of imports for February with a 15.7 percent share, reported shipments billed at $527.89 million against exports earnings of $630.79 million. Total trade amounted to $1.159 billion, with a trade surplus registered at $102.90 million.

Singapore followed as the third biggest source of imports. With payments worth $292.27 million, imports accelerated by 28.9 percent from $226.81 million, while revenue from RP’s exports reached $289.06 million resulting to a total trade value of $581.33 million and a $3.21 million deficit for Philippines.

Other major sources of imports for the month of February were Taiwan, $242.72 million;People’s Republic of China, $226.83 million; Saudi Arabia, $217.17 million; Republic of Korea, $195.09 million; Thailand, $136.62 million; Malaysia, $132.54 million; and Hong Kong, $104.92 million.

Payments for imports from the top ten sources for the month amounted to $2.650 billion or 78.9 percent of the total.

Figure 4. Philippine Imports by Country in February: 2006
  

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