Philippine imports plunged 34.5 percent to $3.270 billion  in January as the global economic slowdown continued to take a toll on trade, the National Statistics Office said on Wednesday.

It was the lowest monthly total for imports since February 2005 and the fourth straight month that imports have fallen on an annual basis.

Total external trade in goods for January 2009 reached $5.781 billion, representing a 37.3 percent decline from $9.224 billion recorded during the same month in 2008. This was due to the 34.5 percent decrease of total imports to $3.270 billion from $4.993 billion in January 2008. The same was true for exports where a 40.6 percent decrease was observed to $2.511 billion from $4.231 billion in January 2008.  Thus, the balance of trade in goods (BOT-G) for the Philippines in January 2009 registered a $759.00 million deficit from $762 million deficit in same period last year.  

Electronics purchases, which made up 40 percent of all imports, fell 43.3 percent year-on-year in January. Falling prices of crude oil also drove down oil purchases by an annual 59 percent.

Electronics imports mainly comprise parts used as inputs for semiconductor exports and the sector is feeling the effects of the slowdown in U.S. demand. Electronics exports in January fell 48.4 percent year-on-year, the government has previously said.

The Philippines had a trade deficit of $759 million in January after a revised deficit of $7.62 billion in the full 2008 year.