Philippines Trade Deficit Narrows in January

The Philippines’ trade deficit was unchanged at USD 4.5 billion in March 2026 compared with the same period a year earlier. Exports climbed 20.4% year-on-year to a record USD 8.2 billion, driven by a surge in sales of electronic products (+33%), mainly attributed to increased exports of semiconductors (+38.2%). Exports also surged in machinery and transport equipment (+70.6%) and gold (+84%). The US remained the top export destination (17.1%), followed by Hong Kong (15.9%), Japan (11.8%), and China (11.7%). Meanwhile, imports rose by 12.3% to also a historic high of USD 12.7 billion, pushed by increased purchases of electronic products (+44.2%), mineral fuels (+35.1%), and cereals and cereal preparations (+33.6%). China accounted for the largest share of imports (27.6%), alongside South Korea (11.3%) and Japan (8.4%). For the first quarter, the trade deficit widened to USD 12.8 billion from USD 12.5 billion in the corresponding period last year.

The Philippines’ trade deficit widened to USD 3.7 billion in February 2026 from USD 3.0 billion a year earlier. Imports jumped 12.6% year-on-year to USD 11.0 billion, the fastest pace since June 2025, driven largely by higher purchases of electronic products (+39.3%), including semiconductors (+44.6%), electronic data processing equipment (+41.1%), and office equipment (+26.3%). China accounted for the largest share of imports (28.4%), followed by South Korea (12.5%), Japan (8.5%), and Indonesia (7%). Meanwhile, exports rose a softer 8%, the slowest pace in six months, to USD 7.3 billion, driven by gains in electronic products (+20.5%), machinery and transport equipment (+47.7%), and gold (+132.2%). The US remained the top export destination (19.3%), followed by Hong Kong (16%), Japan (13.5%), and China (9.1%). For the first two months of 2026, the trade deficit edged up slightly to USD 8.0 billion from USD 7.9 billion last year.

The Philippines’ trade deficit narrowed to USD 4.0 billion in January 2026 from USD 4.9 billion a year earlier, as exports rose while imports declined. Exports increased 7.9% year-on-year to USD 7.1 billion, led by higher shipments of electronic products (+18.8%), which remained the country’s top export commodity, accounting for 56.5% of total exports. Outbound shipments also rose for gold (+263%) and machinery and transport equipment (+68.4%). The US accounted for the largest share of exports (16.4%), followed by Hong Kong (15.9%), Japan (12.3%), and China (9.8%). Meanwhile, imports fell 3.1% to USD 11.1 billion, weighed down by lower purchases of mineral fuels, lubricants, and related materials (-25%), transport equipment (-3.3%), and industrial machinery and equipment (-12.2%). China remained the largest source of imported goods (29.2%), followed by South Korea (11.2%), Japan (8.3%), and Indonesia (7.1%).