Imports rebounded 11.7 percent in March from a 5.6-percent decline in February, on higher demand for consumer and capital goods, the Philippine Statistics Authority said Wednesday.
Data from PSA showed merchandise imports climbed to $6.35 billion in March from $5.69 billion a year ago.
“The continued strength of merchandise imports and the fact that it is fueled by spending on capital goods bodes well for the economy. This growth also mirrors the positive prospects of the economy that are expected to be sustained for the rest of the year,” said Economic Planning Secretary Emmanuel Esguerra.
Total imports in the first quarter increased 8.8 percent to $18.6 billion from $17.1 billion posted in the same period in 2015. PSA said earlier exports fell 8.4 percent in the quarter to $13.1 billion from $14.3 billion.
The strong imports and sluggish exports resulted in a trade deficit of $1.7 billion in March and $5.5 billion in the first quarter.
The National Economic and Development Authority said the recovery in March imports was due to significant increases in orders for capital and consumer goods, which posted 24.1 percent and 39.4 percent growth, respectively.
Data showed that among 11 selected Asian countries, only the Philippines posted positive growth in imports during the month. South Korea, Malaysia and Taiwan showed the steepest declines.
“Given the general sluggishness of import activities in the region, government support for higher spending on infrastructure is critical not only because it supports domestic demand but more importantly, because it increases the country’s attractiveness to investors,” Esguerra said.
Esguerra said the continued expansion of public and private construction, along with investments in durable equipment would continue to drive fuel imports growth in the near term.
“Meanwhile, increased employment opportunities with increased government spending for personnel services and maintenance and operating expenditures will contribute to the growth of consumer goods imports,” said Esguerra.
Iron and steel imports climbed 66.3 percent to $214.35 million, followed by industrial machinery and equipment which jumped 50.4 percent to $446.18 million.
Purchases of raw materials and intermediate goods as well as mineral fuels and lubricants declined during the period owing to the waning demand for wheat, inedible crude materials and lower import payments for other mineral fuels and lubricants and petroleum.
“The government needs to stay on course towards improving the climate for doing business in the country. This will improve our attractiveness to both local and foreign investors. The passage of the Customs Modernization Act is a step in this direction, as it will reduce opportunities for corruption and technical smuggling,” said Esguerra.
Imported goods from Thailand soared 84.2 percent, overtaking China (45.3 percent) and Japan (48.9 percent) and replacing the United States as one of the top three import sources.