JANUARY TO JULY 2008 TOTAL TRADE STANDS AT $64.415 BILLION

Total external trade in goods for January to July 2008 reached $64.415 billion, a 10.1 percent increment from $59.397 billion during the 7-month period in 2007. This is due to the 15.8 percent growth of the total imports to $35.380 billion from $30.548 billion during the 7-month period in 2007. On the other hand, total exports posted a growth of 4.1 percent for January to July 2008 to aggregate dollar revenue of $30.035 billion from $28.849 billion in the same period last year. Balance of trade in goods (BOT-G) during the 7-month period in 2008 registered a deficit of $5.345 billion from $1.699 billion deficit in the same period last year. 

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

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

JULY 2008 IMPORTS UP BY 16.0 PERCENT

Total merchandise trade for July 2008 rose by 10.7 percent to $10.285 billion from $9.290 billion in July 2007. Exports receipts in July 2008 totaled to $4.437 billion, up by 4.4 percent from last year’s $4.249 billion. The country’s merchandise imports, on the other hand, continued its growth by 16.0 percent to $5.848 billion from $5.042 billion in July 2007, due to the increase in the inward shipments of rice and the continued surge of oil prices. The balance of trade in goods   (BOT-G) in July 2008 recorded a deficit of $1.411 billion from $793.00 million deficit in the same period last year.

MINERAL FUELS, LUBRICANTS AND RELATED MATERIALS ACCOUNT FOR 30.2 PERCENT OF IMPORT BILL

Mineral Fuels, Lubricants and Related Materials in July 2008 dislodged Electronic Products as the top import for July 2008 with 30.2 percent share and posted a growth of 71.8 percent to $1.764 billion over the previous year’s level of $1.027 million.

Electronic Products accounting for 29.8 percent of the aggregate import bill, ranked second with payments amounted to $1.745 billion fell by 17.4 percent over last year's figure of $2.113 billion.  However, payments for Electronic Products increased by a measly 0.1 percent from $1.743 billion recorded in June 2008. Among the major groups of electronic products, Components/Devices (Semiconductors) had the biggest share of 22.7 percent, down by 20.3 percent to $1.328 billion from $1.666 billion in July 2007.

Cereals and Cereal Preparations, contributing 6.7 percent to the total import bill, was the RP’s third top import for the month with payments placed at $392.48 million from last year’s $170.17 million or an increase of 130.6 percent.   This was due to the increase in the importation of rice.

Transport Equipment, accounting for a 3.5 percent of the total imports, ranked fourth as foreign bill amounted to $206.24 million, fell by 2.6 percent from $211.81 million last year.   

Industrial Machinery and Equipment ranked fifth recorded a share of 3.5 percent at $205.83 million worth of imports, went up by 8.4 percent from its year ago level of $189.93 million. 

Iron and Steel, ranked sixth comprising 3.4 percent of the total imports registered $201.13 million worth of imports; rose by 65.8 percent from its year ago level of $121.28 million.

Rounding up the list of the top ten imports for July 2008 were Organic and Inorganic Chemicals, $137.05 million; Plastics in Primary and Non-Primary Forms with $102.81 million worth of imports; Telecommunication Equipment and Electrical Machinery, $81.32 million; and Textile Yarn, Fabrics, Made-Up Articles and Related Products, $66.01 million.

Aggregate payment for the country’s top ten imports for July 2008 reached $4.901 billion or 83.8 percent of the total import bill.

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

RAW MATERIALS AND INTERMEDIATE GOODS ACCOUNT FOR 32.1 PERCENT OF THE TOTAL IMPORTS

Accounting for 32.1 percent of the total imports, payments in July 2008 for Raw Materials and Intermediate Goods amounted to $1.876 billion or 7.1 percent decline over last year's figure of $2.018 billion.  Compared to the previous month’s level, purchases likewise fell by 5.5 percent from $1.986 billion. Semi-Processed Raw Materials had the biggest share of 29.4 percent and valued at $1.721 billion.

Capital Goods, which comprised 23.9 percent of the total imports, went down by 4.5 percent year-on-year, to $1.399 billion from $1.465 billion. The major share went to Telecommunication Equipment and Electrical Machinery with a 13.3 percent share of the total imports in July 2008 and billed at $777.72 million.

Mineral Fuels, Lubricants and Related Materials with a 30.2 percent share, increased by 71.8 percent to $1.764 billion from $1.027 billion in July 2007.  

Purchases of Consumer Goods amounted to $744.60 million or an increase of 57.7 percent from $472.06 million in July 2007, while Special Transactions likewise grew by 8.6 percent to $65.53 million from $60.37 million in July 2007.

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

SAUDI ARABIA CORNERS 15.9 PERCENT OF JULY 2008 IMPORT BILL 

Saudi Arabia was the country's biggest source of imports for July 2008 with 15.9 percent share of the total import bill rose by 65.8 percent to $928.69 million from $560.24 million in July 2007.  Exports to Saudi Arabia amounted to $4.74 million, yielding a two-way trade value of $933.43 million and a trade deficit for RP at $923.95 million.

Japan followed as the second biggest source of imports with 10.5 percent share, recording payments worth $613.30 million, up by 9.1 percent from $562.40 million in July 2007.  Revenue from RP’s exports to Japan, on the other hand, reached $698.73 million, generating a total trade value of $1.312 billion and an $85.43 million trade surplus for the Philippines.

Singapore came third, accounting for a 10.4 percent share of the total import bill in July 2008, rose by 15.7 percent to $605.29 million from $523.11 million during the same month in 2007. Exports to Singapore amounted to $296.89 million resulting to a total trade value of $902.18 million and a trade deficit of $308.40 million.

United States of America (USA) settled fourth, accounting for a 10.1 percent share of the total import bill in July 2008, declined by 4.7 percent to $590.39 million from $619.74 million during the same month in 2007. Exports to United States of America (USA) amounted to $707.43 million resulting to a total trade value of $1.298 billion and a trade surplus of $117.05 million for the Philippines.

Other major sources of imports for the month of July 2008 were People’s Republic of China, $416.06 million; Taiwan, $354.09 million; Thailand, $328.54 million; Republic of Korea, $294.32 million; Malaysia, $264.31 million; and Vietnam, $253.37 million.

Payments for imports from the top ten sources for July 2008 amounted to $4.648 billion or 79.5 percent of the total.

Figure 4  Philippine Imports by Country in July: 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