Imports decline in November

MANILA, Philippines - The country's merchandise exports went down by 10.8 percent to $4.989 billion in November 2014 from the $5.593 billion posted a year ago, the Philippine Statistics Authority (PSA) reported on Tuesday.

"The decline in total imports for this period was due to the negative performance of four out of the top ten major commodities for the month. These were: transport equipment; mineral fuels, lubricants and related materials; industrial machinery and equipment; and miscellaneous manufactured articles," PSA noted.

For the first eleven months of 2014, the country's imports bill increased by 2.8 percent to $58.5 billion from $57 billion a year ago. With faster growth in exports at 10.2 percent, trade-in-goods deficit for the January to November period narrowed significantly to $1.5 billion from $5.2 billion in the same period in 2013, the National Economic and Development Authority (NEDA) noted.

"The prevailing low oil price environment, which is expected to persist until 2015, may further increase the country’s total oil importation for the remaining part of 2014 and for the whole of 2015 given the country’s high dependence on imported oil. Imports of consumer goods will likewise remain positive for the remaining month of the year, mainly supported by the uptick in domestic consumption primarily of food," NEDA Director General and Socioeconomic Planning Secretary Arsenio Balisacan said.

He added that the global economy is fragile at present, with developed economies struggling with deflation, precarious fiscal positions and slowing consumer demand, among others.

"The continuing low prices of oil bode well for the country’s consumer activity, given the relief from hikes in fares, utility costs, and other consumer items. Industrial activity also benefits from the reduction in operating costs. This is also an opportune time to implement programs to encourage backward linkages among domestic industries. Programs that improve productivity through the use of technology and that facilitate access to credit, such as those of the Departments of Trade and Industry and Science and Technology," Balisacan said.