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MERCHANDISE imports decelerated to a single-digit growth pace in May, the lowest since a late-2009 recovery, amid a marked slowdown in exports and manufacturing.
National Statistics Office data showed the import bill grew by only 1.6% to $4.89 billion. Month on month, imports were down 11.1%. For the January-to-May period, however, imports were still up by 17.4% to $26 billion.
With exports at $4.11 billion, the country clocked in a May trade deficit of $780 million.
“What’s happening is that the manufacturing sector and exports are decelerating,” said Sergio R. Ortiz-Luis, Jr., Philippine Exporters Confederation, Inc. president, noting that imports are tracking these sectors.
Raw materials and intermediate goods accounted for 47.3% of total imports, data showed.
Merchandise exports declined by an annual 3.2% in May, from double-digit growth of 19.1% in April. Manufacturing output grew by just 0.9% in terms of volume.
“This causes us to worry over the 10% [growth] target for exports. It’s going to be difficult [to hit the target] unless there’s a rebound in the second semester,” added Mr. Ortiz-Luis, who is also the vice-chairman of the Export Development Council.
Annual growth in electronics shipments — which accounted for 34.8% of May imports — flattened at 11.2% to $1.70 billion from $1.53 billion last year. But it rebounded on a monthly basis, gaining 0.6% in a turnaround from April’s 17.7% loss.
“It went up [from a month ago] because some companies increased their bookings,” Semiconductor and Electronics Industries in the Philippines, Inc. President Ernesto B. Santiago said.
The United States was the top source of imports in May at $659 million, or a 13.5% share of the total. It was followed by the People’s Republic of China ($518.98 million) and Japan ($484.46 million).
Mr. Ortiz-Luis remained conservative regarding his June outlook. “It’s more or less the same,” he said, adding that the figure would depend on manufacturing activity. — Karen Joyce Q. Ang
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Source: Business World, July 27, 2011
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