Philippine Imports Fell Most in 10 Years in November
Philippine imports fell the most in 10 years in November as manufacturers reduced purchases amid slowing demand at home and abroad.
Overseas purchases tumbled 31.5 percent from a year earlier to $3.48 billion, the National Statistics Office said in Manila today. That’s the biggest drop since October 1998, resulting in the first monthly trade surplus in more than 1 1/2 years. Imports declined 11.1 percent in October.
Slumping economies in the U.S., Japan and Europe are hurting demand for products ranging from cars to mobile phones. Intel Corp. last week said it was closing its 34-year-old Philippine chip-assembly plant together with four other factories in the U.S. and Malaysia.
“Electronics is dependent on demand from developed countries, who have big problems,” said Luz Lorenzo, an economist at ATR-KimEng Securities Inc. in Manila. “I don’t see demand increasing till 2010.”
Philippine Economic Planning Director Dennis Arroyo said last week that economic expansion in the fourth quarter may miss the government’s estimates and slow to as little as 3.6 percent amid a “broad-based slowdown.”
Electronics imports plunged 42 percent to $1.3 billion in November, the statistics office said today paydayloans. Electronics make up 60 percent of Philippine exports, which are equivalent to a third of the economy.
Commodity Prices
Imports may also have declined as the global recession dragged prices of oil and other commodities lower, Lorenzo said.
“Commodity prices will be weak,” she said. After commodity prices rose to records earlier last year, consumers “did things to make their consumption go down. I don’t expect them to go back to the habits of before.”
Imports of crude oil and other mineral fuels and lubricants fell 44 percent to $539 million. Capital goods purchases declined 29 percent to $1.07 billion. Consumer goods purchases dropped 6.7 percent to $444 million.
The country had a trade surplus of $31 million in November from a $1.12 billion deficit a year earlier. For the first 11 months, the nation had a $6.99 billion deficit, compared with $4.53 billion a year earlier.
Exports fell a revised 11.4 percent to $3.51 billion, the agency said today.
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