Weakness in global economy drags down April imports

(Update) MANILA, Philippines - Philippine imports in April fell by more than a third, declining for the seventh straight month. The National Statistics Office reported on Thursday that imports slid 37.4 percent to $3.041 billion. In March, imports recorded a revised contraction of 36.2 percent. For the first four months of the year, imports slumped 35.07 percent to $12.639 billion. As imports continue to slacken, an economist said exports, an engine of growth for the domestic economy, would also continue contraction. “I see exports contracting by between 20 and 30 percent this year. The April and the January to April numbers are consistent with this view," Benjamin Diokno, economist at the University of the Philippines, said. Electronic products items, which are mainly used as components for Philippines' top export products, contracted 42 percent to $924.42 million. In March, electronic products were down by 40.7 percent. Electronic products made up about a third, 30.4 percent, of the Philippines total imported goods. Philippine imports also extended decline as commodities bought from top trading partners such as Japan, US and China decreased led by iron and steel, transport equipment and industrial machinery amid deepening global recession. Japan, which was the country's biggest source of imports at 12.9 percent, posted a decline to $393.02 million from $552.45 million. Trade value hit $826.88 million after revenue from exports to Japan reached $433.86 million. This resulted to $40.84-million trade surplus for the Philippines. The world's largest economy, US, was just the second biggest source of imports. Its value plummeted by 43.9 percent to $318.91 million from $568.29 million. Trade surplus hit $128.32 million as exports to US amounted to $447.23 million. -GMANews.TV