MANILA, Philippines - Merchandise imports would likely recover in the third quarter following a contraction in June and May, the research arm of Metropolitan Bank & Trust Co. said.
“Coming from a second quarter decline, expect figures to improve in the third quarter given the country’s import season,” Mabellene Reynaldo, research analyst at the bank, said in a report.
“Logistical bottlenecks however may dampen the overall figure as port congestion remains,” she added.
Imports went down 3.6 percent to $4.716 billion in June, due to the negative performance of industrial machinery and equipment, electronic products, and other food and live animals.
The June decline marks the second consecutive month of contraction following a four percent drop in May.
In the first half of the year, merchandise imports climbed 5.4 percent to $31.35 billion from $29.75 billion in the same period in 2013.
“The growth however is attributed to the surge in imports during the first quarter. Imports during the second quarter contracted by 1.2 percent year-on-year,” Reynaldo said.
“Electronic products imports continue to be low, declining by 1.7 percent year-on-year in the first half. Double-digit annual growth in other products, however, supported the overall import performance,” she said.
“Transport equipment, plastics, and iron and steel were the fast-movers among manufactured goods. Rice and corn imports have more than doubled during the first half, given low local production and growing domestic demand,” Reynaldo further said.
The government has forecast merchandise imports to climb by nine percent this year amid reconstruction and rehabilitation efforts being done following a slew of typhoons late in 2013.