The National Statistics Office (NSO) reported yesterday that import payments during the four-month period rose by 6.9 percent to $13.202 billion from $12.347 billion a year ago.
"The pace of imports is encouraging. This suggests that exports will continue to remain positive. This is supportive of sustained export growth for the next three to six months," said Song Seng Wun, GK Goh Securities regional analyst in Singapore.
Economic Planning Secretary Romulo Neri said yesterday the sustained high growth in imports of electronic products, telecommunications equipment and electrical machinery augured well for the economy.
"The strong growth in imports of electronics and capital goods means that we can export higher exports in electronics and information technology, the two bright sectors of the Philippine economy, " Neri said.
For April alone, the country’s trade deficit grew by five percent to $482 million from $459 million a year ago as demand for imported goods expanded by 8.3 percent to $3.450 billion.
Imports of electronic products, many of which are reassembled for export, rose by 10.3 percent to $1.556 billion in April from $1.411 billion a year ago.
Analysts, however, said the continued weakening of the peso against the dollar coupled with rising oil prices could threaten the economy’s growth prospects, given the political uncertainty after the May 10 elections.
The Philippines, whose trade deficit widened to $1.2 billion last year from $218 million in 2002, imports almost all of its electronics parts, as well as crude oil, industrial machinery, transport equipment, rice, corn and wheat. The peso’s weakness has made imports more expensive.
Mineral fuels, lubricant and related materials were the second biggest imports in April at $333.82 million followed by industrial machinery and equipment at $163.25 million.
Other top imports include: iron and steel, $126 million, garments, $90.8 million; and transport equipment, $86 million.
Japan was the largest source of imports, accounting for $645.44 million or 18.7 percent of total bill followed by the US with $586.65 million.