Philippine imports grew at a slower annual pace in June, but hefty increases in inflows of capital and consumer goods show the country is on track to remain one of the world's fastest-growing economies. Imports in June climbed 15.4 percent, the slowest annual pace in three months, due to a 15.8 percent drop in electronics imports, as global demand for its tech shipments remain sluggish.
Manila's largest imports are inputs used by the semiconductor and electronics industry, also the biggest export sector and a key growth driver.
But in a sign of the economy's resilience amid a weak global backdrop, imports of capital goods soared to 64.6 percent from last year, while consumer goods posted annual growth of 32.6 percent.
"The underlying trend of the import mix supports our view that growth is becoming increasingly investment-led," Nomura said in a note. "Consumer goods imports growth is still solid, but capital goods imports have soared."
The data is consistent with the economy's stellar performance in the second quarter.
Last week, the government announced the growth of 7 percent in April-June from a year earlier, the highest level in three years. It makes the Philippines the fastest growing among all countries that have reported so far for the second quarter.
Investments made the biggest contribution to second quarter Philippine growth, followed by household consumption, which was underpinned by remittances.
Filipinos living and working outside the country sent home a record $13.2 billion in remittances in the first half of 2016.
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