MANILA BULLETIN - February 27, 2008

External trade grew 6.8% in 2007

The Philippines' trade deficit widened 15.7 percent year-on-year to $ 5.04 billion in 2007, the government said Tuesday.

Imports grew 6.8 percent to $ 55.32 billion, outpacing exports which rose 6.0 percent to $ 50.27 billion in the same period, the National Statistics Office (NSO) said.

NSO is headed by Administrator Carmelita N. Ericta.

For December, merchandise imports totalled $ 5.0 billion, 19.7 percent more than a year earlier, while exports rose 21.2 percent to $ 4.7 billion.

Total merchandise trade in December 2007 increased by 20.4 percent to $ 9.473 billion from $ 7.869 billion in December 2006.

Revenue generated by exports grew by 21.2 percent to $ 4.472 billion from the 2006 level of $ 3.690 billion.

The same is true for imports as its growth reached 19.7 percent to $ 5.001 billion from $ 4.178 billion in December 2006.

The balance of trade in goods (BOT-G) in December 2007 recorded a deficit of $ 528.00 million, higher by 8.2 percent from last year's recorded deficit of $ 488.00 million.

Electronic products which accounted for 42.2 percent of the total import bill amounted to $ 2.110 billion, up by 1.6 percent growth over the 2006 figure of $ 2.076 billion.

Compared to the November level, purchases went down by 7.6 percent from $ 2.283 billion.

Among the major groups of electronic products, semiconductors had the biggest share of 33.8 percent, up by 1.7 percent to $ 1.689 billion from $ 1.661 billion during the same month in 2006.

Imports of mineral fuels in December 2007 ranked second with a 20.5 percent share, posting a growth of 90.6 percent to $ 1.023 billion over the 2006 level of $ 536.70 million.

Transport equipment, contributing 4.6 percent to the total bill, was the country's third top import for December 2007 with payments placed at $ 228.10 million from last year�s $ 197.78 million or an increase of 15.3 percent.

This may be due to the importation of other aircraft of an unladen weight exceeding 15,000 kg. Industrial machinery and equipment ranking fourth recorded a share of 4.5 percent at $ 226.91 million worth of imports; up by 44.5 percent from its year ago level of $ 157.08 million.

Iron and steel accounting for a 2.5 percent of the total imports, ranked fifth as foreign bill amounted to $ 126.55 million or a yearon-year growth of 49.6 percent from $ 84.59 million in 2006.

Organic and inorganic chemicals ranked sixth, comprising 2.2 percent of the total imports; registered $ 108.90 million worth of imports or an increase of 85.5 percent from its year ago level of $ 58.71 million.(Edu Lopez)