NSCB - 4th Quarter 2007 National Accounts - Imports of Goods and Services

Fourth Quarter 2007
Gross National Product &
Gross Domestic Product by Expenditure Shares

Non-Factor Services cushions plunge of Total Imports

Total imports went down to negative 2.3 percent from 1.4 percent the previous year, as Total Merchandise Imports shrunk.

Total Merchandise Imports drops

Total Merchandise Imports shrunk by 3.2 percent in the fourth quarter of 2007 from last year’s 0.3 percent growth as all its sub sectors suffered contraction.

The three contributors to the growth of Merchandise Imports were: Cereals and Cereals Products, with a boosted growth of 96.4 percent from a measly 0.8 percent increase; Mineral Fuels, Lubricants and Related Materials, which grew by 7.6 percent from 11.1 percent; and, Dairy Products, which accelerated its growth to 10.8 percent from 9.9 percent.

The Growth of Merchandise Imports was pulled down by Electrical Machinery, Apparatus & Appliances, which sank deeper to negative 15.2 percent from negative 5.5 percent. Both Textile Yarns and Machinery other than Electrical Machinery improved to a lower negative 12.4 from negative 13.5 percent and negative 2.9 percent from negative 6.3 percent, respectively. Likewise, Feeding Stuff and Fertilizers suffered reversal in growths, that is, negative 11.7 from 19.9 percent, and negative 21.5 percent from 14.6 percent, respectively.

Import of Non-Factor Services slows down

Imports of non-factor services decelerated to 11.1 percent in the fourth quarter of 2007 from 17.6 percent in 2006 due to the lackluster performance of Miscellaneous Services, which contracted by 0.4 percent from a high of 17.4 percent last year.

Travel, on the other hand, remained the top contributor to the growth of the sector, despite a slowdown in its growth from 22.2 percent last year to 14.8 percent. Meanwhile, both Transportation and Government grew by 29.0 percent in the fourth quarter from the previous year’s 4.5 percent and 26.2 percent, respectively. On the other hand, Insurance services rebounded to 12.8 percent during the period from negative 13.2 percent last year.

Trade Balance posts deficit

In the fourth quarter of 2007, Total Imports, valued at P709.1 billion exceeded Total Exports, valued at P641.6 billion at current prices, resulting in a trade deficit of P67.6 billion. This is lower than the trade deficit of P39.0 billion registered in the same period last year.

The current trade surplus stood at 0.03 percent of GNP, up from last year’s 0.02 percent.

Trade Index still favorable

The terms of trade during the quarter resulted in a Trade Index of 104.2 percent from 109.2 percent in the same period last year. Trading Gains for the quarter amounted to P6.1 billion.

GNP Implicit Price Index (IPIN) stood at 497.1 from 478.6 in the previous year or a 1.04 percent inflation from 2006.

TOP TEN MERCHANDISE IMPORTS
4th Quarter 2007 and 4th Quarter 2006
AT CONSTANT 1985 PRICES, IN MILLION PESOS

ITEM	Q4 2006	Q4 2007	Growth Rate (%)
1. Mineral fuels,lubricants and related materials	15,302	16,469	7.6
2. Machinery other than electrical machinery	16,755	16,277	-2.9
3. Base metals	3,379	3,112	-7.9
4. Electrical machinery, apparatus & appliances	26,589	22,560	-15.2
5. Cereals & cereal prods	2,565	5,038	96.4
6. Transport equipment	4,961	4,629	-6.7
7. Chemical elements and compounds	3,762	3,503	-6.9
8. Manufactures of metals	2,433	2,213	-9.0
9. Textile yarns	4,681	4,103	-12.4
10. Artificial resins and plastic materials	1,879	1,734	-7.7

IMPORTS OF GOODS AND SERVICES
4th Quarter 2007 and 4th Quarter 2006
AT CONSTANT 1985 PRICES, IN MILLION PESOS

ITEM	2006	2007	Growth Rate (%)
Total Imports	163,442	159,762	-2.3
A. Merchandise Imports	152,268	147,352	-3.2
B. Non-Factor Services	11,174	12,410	11.1

IMPORTS OF GOODS AND SERVICES
Annual 2007 and 2006
AT CONSTANT 1985 PRICES, IN MILLION PESOS

ITEM	2006	2007	Growth Rate (%)
Total Imports	655,791	620,329	-5.4
A. Merchandise Imports	618,767	577,677	-6.6
B. Non-Factor Services	37,024	42,652	15.2

Source: National Statistical Coordination Board (NSCB)

Posted 31 January 2008.