External Trade Performance May 2008 (Preliminary)

JANUARY TO MAY 2008 TOTAL TRADE STANDS AT $45.330 BILLION

Total external trade in goods for January to May 2008 reached $45.330 billion, a 9.9 percent increment from $41.252 billion during the 5-month period of 2007. This is due to the 16.6 percent growth of the total imports to $24.245 billion from $20.800 billion during the 5-month period of 2007. Meanwhile, total exports grew a modest growth of 3.1 percent for January to May 2008 to aggregate dollar revenue of $21.085 billion from $20.452 billion in the same period last year. Balance of trade in goods (BOT-G) for the Philippines registered a deficit of $3.161 billion during the 5-month period in 2008.

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

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

MAY 2008 IMPORTS UP BY 11.3 PERCENT

Total merchandise trade for May 2008 rose by 6.9 percent to $9.007 billion from $8.424 billion in May 2007. Dollar-inflow generated by exports in May 2008 reached $4.224 billion, or 2.3 percent higher from last year’s $4.128 billion. The country’s merchandise imports, on the other hand, continued its growth by 11.3 percent to $4.783 billion from $4.296 billion in May 2007, which could be 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 May 2008 recorded a deficit of $559.00 million from $168.00 million deficit in the same period last year.

ELECTRONIC PRODUCTS ACCOUNT FOR 31.5 PERCENT OF IMPORT BILL

Accounting for 31.5 percent of the aggregate import bill, payments for Electronic Products amounted to $1.506 billion fell by 14.4 percent over last year's figure of $1.759 billion.  The same is true for the previous month’s level where purchases decreased by 5.6 percent from $1.595 billion. Among the major groups of electronic products, Components/Devices (Semiconductors) had the biggest share of 23.1 percent, down by 22.9 percent to $1.105 billion from $1.433 billion in May 2007.

Imports of Mineral Fuels, Lubricants and Related Materials in May 2008 ranked second with a 24.7 percent share and posted a positive growth of 50.0 percent to $1.179 billion over the previous year’s level of $785.78 million.

Cereals and Cereal Preparations, contributing 6.2 percent to the total import bill, was the RP’s third top import for the month with payments placed at $294.78 million from last year’s $114.83 million or an increase of 156.7 percent.   This is due to the increase in the importation of rice.

Transport Equipment, accounting for a 4.3 percent of the total imports, ranked fourth as foreign bill amounted to $203.39 million or a year-on-year decline of 14.8 percent from $238.68 million last year.  

Industrial Machinery and Equipment ranked fifth recorded a share of 3.9 percent at $185.25 million worth of imports, went up by 18.2 percent from its year ago level of $156.77 million. 

Iron and Steel, ranked sixth comprising 3.8 percent of the total imports registered $179.75 million worth of imports; up by 122.1 percent from its year ago level of $80.93 million.

Rounding up the list of the top ten imports for May 2008 were Organic and Inorganic Chemicals,$107.05 million; Plastics in Primary and Non-Primary Forms with $92.44 million worth of imports;Telecommunication Equipment and Electrical Machinery, $71.82 million; and Textile Yarn, Fabrics, Made-Up Articles and Related Products, $69.57 million.

Aggregate payment for the country’s top ten imports for May 2008 reached $3.889 billion or 81.3 percent of the total import bill.

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

RAW MATERIALS AND INTERMEDIATE GOODS ACCOUNT FOR 35.7 PERCENT OF THE TOTAL IMPORTS

Accounting for 35.7 percent of the total imports, payments in May 2008 for Raw Materials and Intermediate Goods amounted to $1.707 billion or a 6.4 percent decline over last year's figure of $1.823 billion.  Compared to the previous month’s level, purchases likewise went down by 7.4 percent from $1.843 billion. Semi-Processed Raw Materials had the biggest share of 33.0 percent and valued at $1.579 billion.

Capital Goods, which comprised 25.0 percent of the total imports, went down by 2.2 percent year-on-year, to $1.194 billion from $1.220 billion. The major share went to Telecommunication Equipment and Electrical Machinery with a 12.2 percent share of the total imports in May 2008 and billed at $583.31 million.

Mineral Fuels, Lubricants and Related Materials with a 24.7 percent share, increased by 50.0 percent to $1.179 billion from $785.78 million in May 2007.  

Purchases of Consumer Goods amounted to $628.75 million or an increase of 53.9 percent from $408.64 million in May 2007, while Special Transactions likewise grew by 28.1 percent to $74.90 million from $58.46 million.

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

UNITED STATES CORNERS 11.4 PERCENT OF MAY 2008 IMPORT BILL  

United States of America (USA) was the country’s biggest source of imports for May 2008 with an 11.4 percent share of the total import bill or a decline of 6.4 percent to $547.21 million from $584.67 million in May 2007.  Exports to United States of America (USA) amounted to $675.59 million, yielding a two-way trade value of $1.223 billion and a trade surplus for RP at $128.39 million.

Japan followed as the second biggest source of imports with a 10.9 percent share, recording payments worth $519.30 million, up by 15.3 percent from $450.35 million in May 2007.  Revenue from RP’s exports to Japan, on the other hand, reached $665.40 million, generating a total trade value of $1.185 billion and a $146.10 million trade surplus for the Philippines.

Saudi Arabia came third, accounting for a 10.4 percent share of the total import bill in May 2008, up by 74.4 percent to $496.99 million from $284.90 million during the same month in 2007. Exports toSaudi Arabia amounted to $7.37 million resulting to a total trade value of $504.36 million and a trade deficit of $489.63 million.

Other major sources of imports for the month of May 2008 were Singapore, $481.48 million;People’s Republic of China, $345.83 million; Taiwan, $293.14 million; Thailand, $274.74 million;Republic of Korea, $235.83 million; United Arab Emirates, $192.66 million; and Vietnam, $187.95 million.

Payments for imports from the top ten sources for May 2008 amounted to $3.575 billion or 74.8 percent of the total.

Figure 4  Philippine Imports by Country in May: 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