External Trade Performance : May 2006 (Preliminary)

January to May 2006 total trade stands at $38.652 billion

Total external trade in goods for January to May 2006 reached $38.652 billion representing an increase of 11.8 percent from $34.568 billion during the same period a year earlier. Similarly, total foreign-made merchandise grew by 8.2 percent to $19.965 billion from $18.455 billion. Exports as well, registered a positive growth of 16.0 percent to aggregate dollar revenue of $18.687 billion from $16.113 billion a year ago. Balance of trade in goods (BOT-G) deficit for the Philippines reached $1.279 billion, lower compared to last year’s deficit of $2.342 million.

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

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

May imports register 15.2 percent increase

Total merchandise trade for May 2006 went up by 16.2 percent to $8.254 billion from $7.103 billion during the same period a year ago. Dollar-inflow generated by exports reached $3.878 billion, or 17.3 percent higher than last year’s $3.305 billion. Likewise, expenditures for imported goods was up by 15.2 percent to $4.376 billion from $3.798 billion. The balance of trade in goods (BOT-G) registered a deficit at $499 million, higher from last year’s deficit of $493 million.

Electronic products account for 45.3 percent of import bill

Accounting for 45.3 percent of the total aggregate import bill, payments for electronic products amounted to $1.984 billion or a 9.1 percent growth over last year’s figure of $1.818 billion. Compared to the previous month’s level, purchases declined by 11.2 percent from $2.234 billion.

Imports of mineral fuels, lubricants and related materials in May ranked second with 20.6 percent share. Expenditures at $899.58 million, posted a double-digit increase at 82.0 percent over the previous year’s level of $494.26 million, as world prices of imported diesel and petroleum oils from bituminous minerals and crude as well as motor spirit (gasoline) went up.

Industrial machinery and equipment, contributing 3.9 percent to the total bill, was RP’s third top import for the month with payments placed at $169.32 million from last year’s $129.29 million. The gain was mainly brought about by the 31.0 percent rise in the value of imports on  machinery and mechanical appliances and parts.

Transport equipment, accounting for 2.8 percent of the total imports, ranked fourth as foreign bill amounted to $123.28 million from $116.65 million last year, an increment of 5.7 percent. This can be attributed to the increase in the value of imports on motor vehicles for transport, passenger cars and other parts of airplanes/helicopters.

Iron and steel, comprising 2.6 percent of the total imports, ranked fifth as it grew by 3.4 percent to $112.17 million from $108.48 million a year earlier.

Expenditures for textile yarn, fabrics, made-up articles and related products, with a 2.3 percent share, registered a $100.29 million worth of imports from $92.28 million of the previous year. Higher value in the importation of knitted/crocheted fabrics and other woven fabrics mainly contributed the growth of 8.7 percent.

Rounding up the list of the top imports for May 2006 were cereals and cereal preparations,$89.88 million; plastics in primary and non-primary forms, $78.31 million; organic and inorganic chemical, $66.62 million;and telecommunication equipment and electrical machinery, $55.35 million.

Aggregate payment for the country’s top ten imports for May 2006 reached $3.679 billion or 84.1 percent of the total bill.

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

Raw materials and intermediate goods account for 41.7 percent of the total imports

Payments in May for raw materials and intermediate goods accounted for 41.7 percent as importation slightly went up by 2.0 percent to $1.824 billion from last year’s figure of $1.787 billion. Semi-processed raw materials got the biggest share of 39.3 percent and valued at $1.719 billion.

Capital goods comprising 29.1 percent of the total imports was up by 12.6 percent year-on-year to $1.275 billion from $1.132 billion. The major share went to telecommunication equipment and electrical machinery with an 17.7 percent share of the total imports and billed at $775.72 million.

Expenditures for mineral fuels, lubricants and related materials accelerated by 82.0 percent to $899.59 million from $494.26 million during the same period of 2005.

Purchases of consumer goods amounted to $295.06 million, a dimnish of 9.2 percent from $325.05 million in May 2005, while special transactions improved by 40.5 percent to $82.90 million from $59.00 million.

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

United States corners 16.5 percent of may import bill

Imports from United States accounting for 16.5 percent of the total import bill, inched up by 1.4 percent to $722.48 million from $712.44 million during the same period of 2005. Exports toUS, amounted to $703.48 million yielding a two-way trade value of $1.426 billion and a trade deficit for RP placed at $19.00 million.

Japan, the country’s second biggest source of imports for May with an 11.7 percent share, reported shipments billed at $509.93 million against exports earnings of $681.02 million. Total trade amounted to $1.191 billion, with a trade surplus registered at $171.09 million.

Taiwan followed as the third biggest source of imports. With payments worth $393.03 million, imports moved up by 43.4 percent from $274.13 million, while revenue from RP’s exports reached $163.62 million resulting to a total trade value of $556.65 million and a $229.41 million deficit for Philippines.

Other major sources of imports for the month of May were Singapore, $326.23 million;People’s Republic of China, $303.16 million; Saudi Arabia, $283.90 million; Iran, $281.95 million; Republic of Korea, $272.01 million; Malaysia, $204.82 million; and Thailand,$175.23 million.

Payments for imports from the top ten sources for the month amounted to $3.473 billion or 79.4 percent of the total.

Figure 4. Philippine Imports by Country in May: 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