External Trade Performance : March 2006 (Preliminary)

1st quarter 2006 total trade stands at $22.069 billion

Total external trade in goods for January to March 2006 reached $22.069 billion representing an increase of 9.8 percent from $20.107 billion during the same period a year earlier.  Similarly, total foreign-made merchandise went up by 6.0 percent to $11.173 billion from $10.545 billion. Exports also registered a positive increment of 14.0 percent to aggregate dollar revenue of $10.896 billion from $9.562 billion last year. Balance of trade in goods (BOT-G) deficit for the Philippines reached $276 million, lower compared to last year’s deficit of $983 million.

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

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

March imports register 8.0 percent increase

Total merchandise trade for March 2006 was up by 16.4 percent to $8.264 billion from $7.100 billion during the same period of the previous year. Dollar-inflow generated by exports amounted to $4.126 billion, or 26.3 percent higher than last year’s $3.268 billion. Likewise, expenditures for imported goods grew by 8.0 percent to $4.138 billion from $3.832 billion. The balance of trade in goods (BOT-G) registered a deficit at $12 million, lower from last year’s deficit of $564 million.

Electronic products account for 45.4 percent of import bill

Accounting for 45.4 percent of the total aggregate import bill, payments for electronic products amounted to $1.878 billion or a 3.6 percent rise over last year’s figure of $1.813 billion. Compared to the previous month’s level, purchases gained by 16.5 percent from $1.612 billion.

Imports of mineral fuels, lubricants and related materials in March ranked second with 14.9 percent share. Expenditures at $615.06 million, posted a 29.4 percent growth over the previous year’s level of $475.49 million as world prices of imported diesel and petroleum oils and oils from bituminous minerals and  crude went up.

Cereals and cereal preparations, the third top import was worth $167.74 million, from $90.65 million a year earlier. The growth was mainly brought about by the 85.0 percent jump in the value of imports as higher values were noted in the importation of rice (semi/wholly-milled) and wheat used as feeds..

Industrial machinery and equipment, contributing 3.8 percent to the total bill, was RP’s fourth top import for the month with payments placed at $158.27 million or an increment of 11.2 percent from last year’s $142.30 million.

Transport equipment, accounting for 3.2 percent of the total imports, ranked fifth as foreign bill amounted to $134.36 million from $115.01 million last year, a double-digit increase of 16.8 percent. This can be attributed to the increase in the value of imports on other (public-transport type passenger) motor vehicle and other parts of airplanes/helicopters.

Expenditures for textile yarn, fabrics, made-up articles and related products, with a 2.2 percent share, registered a $90.98 million worth of imports from $77.75 million a year ago. Higher value in the importation of knitted/crocheted fabrics and plain weave fabrics mainly contributed the growth of 17.0 percent

Rounding up the list of the top imports for March 2006 were plastics in primary and non-primary forms, $86.40 million; organic and inorganic chemical, $80.13 million; iron and steel , $71.72 million; and telecommunication equipment and electrical machinery, $69.26 million.

Aggregate payment for the country’s top ten imports for March 2006 reached $3.352 billion or 81.0 percent of the total bill.

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

Raw materials and intermediate goods account for 42.4 percent of the total imports

Payments in March for raw materials and intermediate goods accounted for 42.4 percent as importation was up by 2.7 percent to $1.752 billion from last year’s figure of $1.706 billion.Semi-processed raw materials got the biggest share of 38.5 percent and valued at $1.594 billion.

Capital goods comprising 32.2 percent of the total imports gained by 4.4 percent year-on-year to $1.330 billion from $1.274 billion. The major share went to telecommunication equipment and electrical machinery with an 18.6 percent share of the total imports and billed at $771.79 million.

Expenditures for mineral fuels, lubricants and related materials improved by 29.4 percent to $615.06 million from $475.49 million during the same period of 2005.

Purchases of consumer goods amounted to $361.47 million, an increase of 18.9 percent from $304.01 million in March 2005, while special transactions advanced by 9.0 percent to $78.58 million from $72.10 million.

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

United States corners 16.1 percent of march import bill

Imports from United States accounting for 16.1 percent of the total import bill, dropped by 5.2 percent to $667.38 million from $704.10 million during the same period of 2005. Exports to US, amounted to $704.21 million yielding a two-way trade value of $1.372 billion and a trade surplus for RP placed at $36.83 million.

Japan, the country’s second biggest source of imports for March with a 14.4 percent share, reported shipments billed at $594.96 million against exports earnings of $655.53 million. Total trade amounted to $1.250 billion, with a trade surplus registered at $60.57 million.

Singapore followed as the third biggest source of imports. With payments worth $448.55 million, imports accelerated by 72.9 percent from $259.47 million, while revenue from RP’s exports reached $340.50 million resulting to a total trade value of $789.05 million and a $108.05 million deficit for Philippines.

Other major sources of imports for the month of March were Taiwan, $320.83 million;People’s Republic of China, $298.76 million; Republic of Korea, $234.45 million; Saudi Arabia, $233.36 million; Malaysia, $198.09 million; Hong Kong, $162.79 million; andThailand, $155.54 million.

Payments for imports from the top ten sources for the month amounted to $3.315 billion or 80.1 percent of the total.

Figure 4. Philippine Imports by Country in March: 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