Total external trade in goods for August 2012 reached $8.855 billion, representing a 4.3 percent decrease from $9.249 billion recorded during the same month in 2011. The decrease can be attributed to the 9.0 percent negative growth of exports from $4.173 billion to $3.798 billion in the same month a year ago. Also, total imports slightly declined by 0.4 percent from $5.076 billion in August 2011 to $5.057 billion.  Thus, the balance of trade in goods (BOT-G) for the Philippines in August 2012 registered a deficit of $1.259 billion from $903 million deficit in the same period last year.

   Figure 2A  Philippine Trade Performance in January - August : 2012 and 2011
(F.O.B. Value in Million US Dollars) 

AUGUST 2012 IMPORTS DROP BY 0.4 PERCENT

The country’s total merchandise imports for August 2012 went down by 0.4 percent from $5.076 billion to $5.057 billion. However, it increased by 1.9 percent compared to previous month’s level to $4.963 billion. On the other hand, aggregate imports slightly went up by 0.1 percent to $40.769 billion value in the first eight months of 2012 from $40.731 billion for the same period in 2011. The decline in imports payments resulted mainly on the lower purchases of goods such as Plastics in Primary and Non-Primary Forms, Industrial Machinery and equipment, Telecommunication Equipment and Electrical Machinery, Iron and Steel and Transport Equipment.

ELECTRONIC PRODUCTS ACCOUNT FOR 29.1 PERCENT OF IMPORT BILL

Accounting for 29.1 percent of the aggregate import bill, payments for Electronic Products (including consigned and direct importation using the expanded coverage of electronic products) expanded by 5.7 percent to reported value of $1.473 billion from $1.393 billion in August 2011. Among the major groups of electronic products, Components/Devices (Semiconductors) having the biggest share of 23.0 percent increased by 11.2 percent to $1.162 billion from $1.045 billion. Similarly, compared to previous month, electronic products as well as the semiconductors went up by 20.5 percent and 28.7 percent from $1.222 billion and $902.65 million recorded in July 2012 respectively.

Import bill payments for Mineral Fuels, Lubricants and Related Materials ranked second among the top ten imports with 19.8 percent share to total imports. The annual growth rate went up by 1.8 percent to $1.003 billion from $984.90 million. The expansion may be attributed to the 4.6 percent increase in volume of inward shipments.

Transport Equipment was the PH’s third top import for the month with 5.8 percent share to total imports valued at $294.17 million. It posted a negative year on year change of 3.4 percent among the top ten imports from $304.46 million from previous year’s value. However, compared to previous month, a slight expansion of 0.2 percent was shown for the recorded value of inward shipment.

Industrial Machinery and Equipment contributing about 5.0 percent to the total import bill was the fourth top import for the month amounting to $250.89 million. Compared to last year’s amount of $268.40 million, it drops by 6.5 percent. Similarly, a 15.8 percent decreased was shown compared to recorded value of $297.79 million in July 2012. However, volume purchases went up by 18.9 percent from the same period last year.

Fifth in rank and with 2.6 percent share to the total imports was Cereals and Cereal Preparations, recorded $132.52 million worth of imports from its year ago level of $107.56 million. An annual positive growth of 23.2 percent was shown because of the 29.3 percent increase in volume of imports compared to August 2011.

Rounding up the list of the top ten imports for August 2012 were Organic and Inorganic Chemicals, $126.34 million; Plastics in Primary and Non-Primary Forms, $122.74 million; Iron and Steel, $115.63 million; Feeding Stuff For Animals (not including unmilled cereals), $97.26 million with the highest growth of 63.3 percent among the top ten imports for August 2012; and Telecommunication Equipment and Electrical Machinery valued at $91.48 million.

Aggregate payment for the country’s top ten imports for August 2012 reached $3.707 billion or 73.3 percent of the total import bill.

RAW MATERIALS AND INTERMEDIATE GOODS ACCOUNT FOR 39.0 PERCENT OF THE TOTAL IMPORTS

Raw Materials and Intermediate Goods, which comprised 39.0 percent of the total imports in August 2012, year-on-year change slightly went down by 0.2 percent from $1.977 billion to $1.973 billion. The contraction was brought about by the 19.8 percent decline in the value of unprocessed raw materials.

Accounting for 27.1 percent of the total imports, payments for Capital Goods amounted to $1.372 billion or 3.9 percent decrement over last year's figure of $1.428 billion.   Compared to the previous month’s level, purchases went down by 4.4 percent from $1.436 billion. However, an increase of 9.2 percent in the volume of  inward shipment was registered compared to last year’s volume of purchases of capital goods.

Purchases of Consumer Goods amounted to $651.71 million or a positive growth of 9.7 percent from $594.16 million in August 2011. The increase was brought about by the 15.8 percent increase in purchases of non-durable goods. On the other hand, volume of inward shipments showed a 19.4 percent increase compared to same month a year ago volume of shipments.

Imports of commodities under Special Transactions valued at $57.95 million dropped by 37.0 percent from $92.02 million recorded in August 2011. Similarly, total volume of inward manifest registered a 27.6 percent drop compared to it’s a year ago volume of importation.

IMPORTS FROM UNITED STATES OF AMERICA ACCOUNT FOR 11.7 PERCENT

United States of America (USA) including Alaska and Hawaii was the country’s biggest source of imports in August 2012 with 11.7 percent share. Payments were recorded at $594.15 million, an increase of 22.4 percent from $485.43 million in August 2011. Revenue from PH’s exports to USA, on the other hand, reached $499.30 million, generating a total trade value of $1.093 billion and $94.85 million trade deficit for the Philippines. The increase in the inward purchases from USA was based on imported commodities like Telecommunication Equipment and Electrical Machinery, Materials/Accessories for the manufacture of electrical equipment and Feeding stuffs for animals.

People’s Republic of China was the second top source of imports with 10.8 percent share to the total import bill amounting to $546.65 million, higher by 4.8 percent from $521.53 million in August 2011. The expansion on inward value of shipments maybe accounted for the imports of the following commodities like telecommunication and equipment and electrical machinery, power generating and specialized machines and miscellaneous manufactures. Exports to People’s Republic of China amounted to $376.55 million, yielding a two-way trade value of $923.21 million and a trade deficit for PH of $170.10 million.

Taiwan came third, accounting for 10.2 percent share of the total import bill in August 2012 with positive growth of 66.9 percent to $513.52 million from $307.66 million. The growth was attributed to the purchases of other minerals, fuels and lubricants and materials/accessories for the manufacture of electrical power. Exports to Taiwan amounted to $120.36 million resulting to a total trade value of $633.88 million and a trade deficit of $393.17 million.

Japan including Okinawa ranked fourth among the top sources of imports for the country accounting for 10.0 percent share of the total import bill in August 2012. It decreased by 13.3 percent from $580.51 million to $503.30 million. On the other hand, exports to Japan amounted to $686.71 million resulting to a total trade value of $1.190 billion and a trade surplus of $183.41 million. Mostly telecommunication equipment and electrical machinery was purchased from Japan in August 2012.

Fifth in rank was Singapore, representing 9.2 percent of the total import bill in August 2012 or an increase of 33.4 percent to $467.73 million from $350.49 million in the same month last year.  Other crude materials, inedible were the high imported goods from Singapore in August 2012. Exports to Singapore amounted to $561.99 million resulting to a total trade value of $1.030 billion and a trade surplus of $94.26 million.

Other major sources of imports for the month of August 2012 were Thailand (passenger cars and motorized cycles), $281.13 million; Republic of Korea (other mineral fuels and lubricants), $275.69 million; Indonesia (coal, coke), $247.65 million; Saudi Arabia (petroleum crude), $218.74 million; and Malaysia (materials/accessories for the manufacture of electrical equipment) $190.30 million.

Payments for imports from the top ten sources for August 2012 amounted to $3.839 billion or 75.9 percent of the total.

IMPORTS FROM EAST ASIA WORTH $1.955 BILLION

^4/ - includes Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Latvia, and UK Great Britain & N. Ireland

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  Source:   Foreign Trade Statistics Section
                Industry and Trade Statistics Department
                National Statistics Office
                Manila, Philippines

  
  Page last revised:   October 25, 2012