Philippines June imports rise on double-digit growth in telecom shipments

Philippines imports during the month of June rose, following double-digit growth in telecom shipments, though at a considerably lower level than the stratospheric rise of the month before.

Total imports in the six months to June hit USD38.75 billion, up 17.7 percent from a year earlier. Electronic imports in June accounted for 24.8 percent of the country's total imports. Growth in imports of telecom equipment accelerated about 14 percentage points to annualized growth of 91.5 per cent for the period.

However, components or semiconductors, which comprise 16.8 percent of total electronic shipments, were down 30.2 percent from a year earlier.

Shipment of mineral fuels, lubricants and related materials, contributing 11.2 percent to the total and the second biggest import item, dropped 5.1 percent to USD767.97 million. Transport equipment, which accounted for 10.4 percent of total imports, jumped 50.7 percent from a year ago.

In addition, together with falling exports, which in June increased to -11.36 percent year-on-year, the import figure brought the Philippines’ trade deficit to USD2.098 billion for the month, growing from USD2.021 billion in May and exceeding market expectations by USD95 million.

Meanwhile, the central bank has lowered its export and import growth forecasts for this year. Exports are now seen rising 3.0 percent, rather than 5 percent, and imports are projected to grow 7.0 percent, instead of 10.0 percent. The targets are based on the definition used for the balance of payments.