January to July total trade stands at $48.070 billion

Total external trade in goods for January to July 2005 amounted to $48.070 billion, a 1.2  percent increment from $47.497 billion during the same period a year earlier. Total foreign-made merchandise went down by 1.7 percent to $25.169 billion from $25.605 billion.On the other hand, exports registered a year-on-year growth of 4.6 percent to aggregate dollar revenue of $22.901 billion from $21.893 billion last year. Balance of trade in goods (BOT-G) deficit for the Philippines reached $2.268 billion lower compared to last year’s deficit of $3.712 billion.

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

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

July imports register 3.1 percent decrease

Total merchandise trade for July 2005  increased by 3.5 percent to $7.107 billion from  $6.870 billion during the same period of the previous year. Dollar-inflow generated by exports amounted to $3.462 billion, or 11.4 percent higher than last year’s $3.109 billion. On the contrary, expenditure on imported goods dropped by 3.1 percent to $3.644 billion from $3.761 billion. The  BOT-G registered a deficit of $182 million, lower compared to last year’s deficit of $652 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 amounted to $1.700 billion or a decline of 11.2 percent over last year’s figure of $1.914 billion. Compared to the previous month’s level, purchases drop by 2.1 percent from $1.737 billion.

Imports of mineral fuels, lubricants and related materials in June ranked second with 11.3 percent share. Expenditures at $412.24 million, registered a 15.8 percent growth over the previous year’s level of $356.10 million as world prices of crude oil went up.

Industrial Machinery and Equipment, contributing 4.2 percent to the  total bill, was RP's third top import for the month with payments at $153.75 million from last year's $153.15 million. The increase of 0.4 percent was due to the high value of imports on parts of specialized machinery and equipment.

Transport Equipment, the fourth top import was worth $129.39 million, or an increase of 13.0 percent from $114.51 million a year ago. This was brought about by importations made on components, parts and accessories of motor vehicles.

Expenditures for textile yarn, fabrics, made-up articles and related products, with a 2.9 percent share, up by 17.9 percent to $105.31 million from $89.33 million in July 2004. The positive growth was effected by higher values of imports on fabrics and yarns.

Cereals and Cereal Preparationst, accounting for 2.7 percent of the total imports, recorded an increase of 57.1 percent with foreign bill amounting to $99.91 million from $63.59 million last year as higher values were noted in the importation of wheat, corn and rice.

Rounding up the list of the top imports for July 2005 were iron and steel, $93.09 million, where higher value in the importation of semi-finished product of alloy and flat rolled products of steel contributed the growth of 18.7 percent; and organic and inorganic chemicals, $90.07 million. Bigger importation of ethylene recorded during the month, primarily contributed to the 47.7 percent increase in organic and inorganic chemicals. The other top imports were telecommunication equipment and electrical machinery, $78.65 million; and plastics in primary and non-primary forms, $71.05 million.

Aggregate payment for the country’s top ten imports for July 2005 reached $2.934 billion or 80.5 percent of the total bill.

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

Raw materials and intermediate goods account for 43.6 percent of the total imports

Payments in July for raw materials and intermediate goods accounted for 43.6 percent share as importation dropped by 7.8 percent to $1.591 billion from last year’s figure of $1.726 billion. Semi-processed raw materials got the major share of 40.0 percent and valued at $1.458 billion.

Capital goods comprising 35.0 percent of the total imports, was down by 2.4 percent year-on-year to $1.276 billion from $1.308 billion. The biggest share went to telecommunication equipment and electrical machinery with an 19.3 percent share of the total imports and billed at $704.94 million.

Expenditures for mineral fuels, lubricants and related materials gained   by 15.8 percent to $412.24 million from $356.10 million during the same period of 2004.

Purchases of consumer goods, amounted to $284.65 million, a rise of 5.0 percent from $271.19 million in July 2004, while special transactions decreased by 19.9 percent to $80.16 million from $100.11 million.

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

United States corners 19.7 percent of july import bill

Imports from US accounting for 19.7 percent of the total import bill, grew by 2.6 percent to $718.58 million from $700.16 million during the same period of 2004. Exports to US, amounted to $581.23 million yielding a two-way trade value of $1.300 billion and a trade deficit for RP placed at $137.35 million.

Japan, the country’s second biggest source of imports for July with a 16.2 percent share, reported shipments billed at $589.28 million against exports earnings of $598.29 million. Total trade amounted to $1.188 billion, with a trade surplust registered at $9.01 million.

Singapore followed as the third biggest source of imports. With payments worth $278.23 million, imports dropped up by 8.9 percent from $305.28 million, while revenue from RP’s exports reached $201.37 million resulting to a total trade value of $479.60 million and a $76.86 million deficit for Philippines.

Other major sources of imports for the month of July were Taiwan, $276.95 million; People’s Republic of China, $258.82 million; Republic of Korea, $177.73 million; Hong Kong, $166.61 million; Thailand, $161.44 million; Saudi Arabia, $123.95 million; and Malaysia, $116.51 million.

Payments for imports from the top ten sources for the month amounted to $2.868 billion or 78.7 percent of the total.

Figure 4. Philippine Imports by Country in July: 2005
 

As of press time, 70 out of 57,337 export documents and 45 out of 76,871 import documents are still expected from the ports.

Source:   National Statistics Office
                 Manila, Philippines