Philippines Trade Gap Widens Sharply in May

The Philippines’ trade deficit widened to USD 5.5 billion in May 2026 from USD 3.6 billion in the same month a year earlier. This marked the second-largest trade gap in over a year, behind only April’s reading, as imports jumped 21.9% year-on-year to USD 13.4 billion, driven by a sharp increase in purchases of electronic products (+93.3%), particularly semiconductors (+125.8%), amid the ongoing global boom in AI demand. Imports also increased for mineral fuels (+35.6%) and cereal and cereal preparations (+2.5%). China accounted for the largest share of imports (31.7%), followed by South Korea (13.2%) and Indonesia (6.4%). Meanwhile, exports rose 7.6% to USD 7.9 billion, driven by higher sales of electronic products (+11.9%), machinery and transport equipment (+51.2%), other mineral products (+30.2%), and gold (+19.4%). The US remained the top export market, accounting for 17.2%, followed by Hong Kong (15.2%), Japan (13.1%), and China (11.5%).

The Philippines’ trade deficit widened to USD 6.0 billion in April 2026 from USD 4.0 billion a year earlier. This marks the largest trade gap since August 2022, as imports jumped 22.4%, the steepest pace in more than three and a half years, to USD 13.2 billion, driven by a surge in purchases of electronic products (+78.2%), mainly semiconductors (+104.6%). Imports of mineral fuels also rose sharply (+105.6%). China accounted for the largest share of imports (29.7%), followed by South Korea (11.8%) and Japan (7.3%). Meanwhile, exports grew at a softer pace of 6.3%, the slowest in eight months, reaching USD 7.2 billion. Shipments of electronic products increased modestly (+1.2%), as a surge in consumer electronics exports (+206.3%) was partially offset by a decline in semiconductors (-4.7%). Exports also rose for coconut oil (+69.3%), other mineral products (+55.4%), and gold (+73.7%). The US remained the top export market, accounting for 18%, followed by China (12.9%) and Japan (12.7%).

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.