External Trade Performance : June 2006 (Preliminary)

January to June 2006 total trade stands at $47.308 billion

Total external trade in goods for the first six months in 2006 reached $47.308 billion representing an increment of 12.3 percent from $42.137 billion during the same period of previous year. Likewise, total foreign-made merchandise went up by 8.4 percent to $24.571 billion from $22.665 billion. Exports as well, registered a positive growth of 16.8 percent to aggregate dollar revenue of $22.737 billion from $19.471 billion a year earlier. Balance of trade in goods (BOT-G) deficit for the Philippines reached $1.834 billion, lower compared to last year’s deficit of $3.194 million.

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

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

June imports register 7.7 percent increase

Total merchandise trade for June 2006 grew by 13.4 percent to $8.585 billion from $7.569 billion during the same period a year ago. Dollar-inflow generated by exports reached $4.050 billion, or 20.6 percent higher than last year’s $3.359 billion. Similarly, expenditures for imported goods increased by 7.7 percent to $4.534 billion from $4.210 billion. The balance of trade in goods (BOT-G) registered a deficit at $484 million, lower from last year’s deficit of $852 million.

Electronic products account for 44.8 percent of import bill

Accounting for 44.8 percent of the total aggregate import bill, payments for electronic products amounted to $2.032 billion or a 4.6 percent growth over last year’s figure of $1.942 billion. Compared to the previous month’s level, purchases  moved up by 0.4 percent from $2.024 billion. Among the major groups of electronic products, components/devices(semiconductors) got the highest growth at 5.7 percent to $1.629 billion from $1.542 billion during the same month in 2005.

Imports of mineral fuels, lubricants and related materials in June ranked second with 17.5 percent share. Expenditures at $791.99 million, posted a double-digit increase at 21.9 percent over the previous year’s level of $649.52 million, as world prices of imported diesel and petroleum oils from bituminous minerals and crude as well as motor spirit (gasoline) went up.

Transport equipment, contributing 4.4 percent to the total bill, was RP’s third top import for the month with payments placed at $199.42 million from last year’s $218.06 million or a year-on-year decline at 8.6 percent.

Industrial machinery and equipment, accounting for 3.8 percent of the total imports, ranked fourth as foreign bill amounted to $173.37 million from $144.91 million last year. The industry growth of 19.6 percent was brought  by the increase in the value of importation of  machinery and mechanical appliances and parts.

Iron and steel, comprising 2.8 percent of the total imports, ranked fifth as it dropped by 2.9 percent to $125.30 million from $129.06 million a year earlier.

Expenditures for cereals and cereal preparations, with a 2.3 percent share, registered a $103.60 million worth of imports from $75.82 million of the previous year and a growth of 36.6 percent. Higher demend in the importation of other wheat (including spelt) and meslin, unmilled and wheat used as feeds, primarily contributed the growth of 36.6 percent.

Rounding up the list of the top imports for June 2006 were textile yarn, fabrics, made-up articles and related products, with $98.83 million worth of imports. Higher value in the importation of knitted/crocheted fabrics mainly contributed the growth of 9.7 percent. Plastics in primary and non-primary forms, $80.67 million; organic and inorganic chemical,$69.78 million; and non-ferrous metal, $61.62 million.

Aggregate payment for the country’s top ten imports for June 2006 reached $3.736 billion or 82.4 percent of the total bill.

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

Raw materials and intermediate goods account for 41.4 percent of the total imports

Payments in June for raw materials and intermediate goods accounted for 41.4 percent as importation rose by 3.2 percent to $1.876 billion from last year’s figure of $1.819 billion. Semi-processed raw materials got the biggest share of 37.8 percent and valued at $1.713 billion.

Capital goods comprising 32.2 percent of the total imports was up by 6.5 percent year-on-year to $1.461 billion from $1.372 billion. The major share went to telecommunication equipment and electrical machinery with an 18.3 percent share of the total imports and billed at $828.27 million.

Expenditures for mineral fuels, lubricants and related materials picked up by 21.9 percent to $791.99 million from $649.52 million during the same period of 2005.

Purchases of consumer goods amounted to $305.66 million, a growth of 5.4 percent from $290.06 million in June 2005, while special transactions accelerated by 24.8 percent to $99.50 million from $79.74 million.

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

United States corners 15.6 percent of june import bill

Imports from United States accounting for 15.6 percent of the total import bill, declined by 5.1 percent to $707.73 million from $745.45 million during the same period of 2005. Exports to US, amounted to $696.69 million yielding a two-way trade value of $1.404 billion and a trade deficit for RP placed at $11.04 million.

Japan, the country’s second biggest source of imports for June with a 12.0 percent share, reported shipments billed at $541.97 million against exports earnings of $822.28 million. Total trade amounted to $1.364 billion, with a trade surplus registered at $280.31 million.

Saudi Arabia followed as the third biggest source of imports. With payments worth $377.15 million, imports climbed by 25.0 percent from $301.79 million, while revenue from RP’s exports reached $5.85 million resulting to a total trade value of $382.99 million and a $371.30 million deficit for Philippines.

Other major sources of imports for the month of June were Taiwan, $373.87 million;Singapore, $354.62 million; People’s Republic of China, $339.23 million; Republic of Korea, $321.18 million; Malaysia, $182.46 million; Hong Kong, $178.09 million; andGermany, $160.16 million.

Payments for imports from the top ten sources for the month amounted to $3.536 billion or 78.0 percent of the total.

Figure 4. Philippine Imports by Country in June: 2006
  

Technical Notes

Adjustments on electronics import statistics are based on approved valuation methodology as per NSCB Resolution No. 8 Series of 2005 and the inclusion of transactions that passes through Automated Cargo Operating System (ACOS).

Source:   National Statistics Office
                 Manila, Philippines