MANILA - The drop in Philippine merchandise imports eased slightly in August to 28.3%, following a 31.6% contraction in the previous month.

Data from the National Statistics Office showed that the country's imports fell 28.3% to $3.617 billion in August from last year's $5.044 billion. Compared to July's imports of $4.025 billion, the figure is lower by 10.2%.

In June, the country's imports fell by 22.8%, the lowest annual drop since October last year. Since November 2008, imports have been declining at a range of 30% to 38%.

Purchases of electronic parts, a key component in the country's exports sector, dropped 21.2% to $1.302 billion in August from the $1.651 billion recorded in the same month last year. This was mainly caused by a 25.7% decrease in semiconductor imports, which had the biggest share of electronics purchases at 26.2%.

Other key imports included mineral fuels, lubricants, transport equipment, industrial machinery, organic and inorganic chemicals, iron, steel, and metal scrap.

Japan remained the country's largest source of imports in July with a 12.6% share, recording payments worth $455.34 million. This was, however a 21.5% decline from last year's $579.90 million.

The United States came in second with $407.99 million or an 11.3% share, followed by China (10%), Singapore (8.3%), and Korea (6.9%).

The Bangko Sentral ng Pilipinas (BSP) is expecting a deeper slump in exports and imports this year. BSP Governor Amando Tetangco has said that imports are likely to fall 17% this year, lower than the bank's initial forecast of a 8% to 12% contraction.

Exports, meanwhile, are projected to fall by 20%. Text and graphs by Karen Flores, abs-cbnNEWS.com