Merchandise imports grew 15 percent to $6.85 billion in June this year from a year ago as strong domestic consumption and investment supported inbound shipments, the Philippine Statistics Authority said Thursday.
The July shipments brought total imports in the first six months of 2016 to $38.746 billion, up 18 percent from $32.917 billion year-on-year.
The National Economic and Development Authority said the Philippines was one of the region’s top import performers in the six-month period.
“This performance shows the strength of domestic demand in the country particularly in consumption and investment, as reflected by the latest real GDP growth of 7.0 percent in the second quarter,” said Economic Planning Secretary Ernesto Pernia.
PSA data showed the balance of trade registered a deficit of $2.098 billion in June, higher than the gap of $576.80 million on year.
Latest import data in June also showed the Philippines outperformed Vietnam (1.9 percent) Malaysia (-1.0 percent), Indonesia (-6.8 percent),India (-7.3 percent), People’s Republic of China (-8.4 percent), and Thailand (-10.1 percent).
ING Bank regional chief economist Tim Condon said rising investments to support the strong import growth would result in a positive re-rating of all financial assets.
“However, we also think the swing to a current account deficit, which we expect will persist, after more than a decade of surpluses requires a negative re-pricing of the Philippine peso; it is the only currency in Asia excluding Japan that we do not consider subject to structural appreciation pressure,” Condon said in an email.
Inward shipments of capital goods jumped 65 percent in June 2016 to $2.2 billion.
“This bodes well for the economy as it signals robust investment activity in industry and services moving forward,” Pernia said.
Imports of consumer goods increased 33 percent to $1.2 billion.
“The trend of imports growth is expected to remain positive, albeit at a slightly lower pace due to a relatively weak outlook for electronics exports, which will affect the importation of electrical equipment. However, strong construction activity will continue to boost spending on durable equipment and capital goods,” said Pernia.
