MANILA, Philippines - Philippine merchandise imports managed to post a 2.4 percent growth in 2014 even as it saw a 10.6 percent year-on-year decline in December, the Philippine Statistics Authority (PSA) said.
The PSA said yesterday total payments for merchandise imports of the country reached $63.923 billion in 2014, up from $62.411 billion in 2013.
This, even as the country’s total imported goods fell to $4.869 billion in December last year from $5.445 billion in the same month in 2013.
The lower year-on-year imports value in December was due to the negative performance of the following commodities: transport equipment; mineral fuels, lubricants and related materials; cereals and cereal preparations; miscellaneous manufactured articles; and industrial machinery and equipment.
Socioeconomic Planning chief Arsenio Balisacan said the December imports performance was dragged down by the plunging oil prices.
Electronic products, the country’s top imported commodity for December 2014 meanwhile, rose 32.3 percent with payments amounting to $1.692 billion from $1.279 billion in December 2013.
The PSA noted that China remained the country’s biggest source of imports with its 13.7 percent share in December 2014.
Payments for imported goods from China reached $668.39 million, down 15 percent from $786.15 million in December 2013.
Balisacan said that in the near term, the strong growth in world crude oil supply and weak global demand are expected to lead to lower imports.
He added that the port congestion remains a significant risk not just for imports, but exports as well.
The lingering effects of the port congestion may have been felt towards the end of last year as both value and volume of major commodity imports and exports slowed down during the holiday season.
“A more lasting solution to the port congestion and other transportation/logistics issues need to be in place, specifically in Metro Manila where approximately 25 percent of all imports passes through. Transportation constraints could further lead to unnecessary escalation of commodity prices,” Balisacan said.
Domestic consumption and investments, however, are seen to support growth in imports.
“Given these, the manufacturing sector will likely continue its growth momentum, thus, keeping imports of raw materials and intermediate goods brisk. Also, stable prices, availability of jobs and more vigorous business activity are seen to further increase consumption spending that could support a healthier demand for imports of consumer products,” Balisacan said.