Philippine Imports Rise 21.9% in May

Philippine imports rose 19.8% year-on-year to USD 14.1 billion in July 2026, easing from an upwardly revised 25% in the previous month. It marked the slowest growth since March, as declines in shipments of transport equipment (-3.8%), industrial machinery and equipment (-3.7%), iron and steel (-8.3%), and other food and live animals (-9.6%) weighed on overall import growth. Meanwhile, imports of electronic products surged 61.3%, led by components and devices (79%) and electronic data processing equipment (32.8%). Import growth was also supported by strong gains in mineral fuels, lubricants, and related materials (34.8%) and cereals and cereal preparations (50.1%). China remained the Philippines’ largest source of imports, accounting for 29.5% of the total, with purchases rising 20.2% from a year earlier. Imports also increased from South Korea (75.7%), Japan (23.1%) and the US (4.2%). In the first seven months of 2026, the country's imports reached USD 92.3 billion.

The Philippines’ trade deficit widened to USD 4.9 billion in June 2026 from USD 4.4 billion in the same month a year earlier. Imports rose 19.6% year-on-year to USD 13.7 billion, driven by increased purchases of electronic products (+82.9%), mainly semiconductors (+105.4%), amid growing global AI demand. Imports also grew for mineral fuels (+6.3%), industrial machinery and equipment (+1.3%), and cereals (+48.1%). China accounted for the largest share of imports (31.7%), followed by South Korea (13.0%), Japan (6.7%), and Indonesia (6.7%). Meanwhile, exports rose 24.1% to USD 8.8 billion, led by electronic products (+35.2%), primarily semiconductors (+33.4%). Exports also increased for machinery and transport equipment (+28.6%), gold (+43.8%), and other manufactured goods (+9.8%). The US remained the top export market, accounting for 20.1% of total exports, followed by Hong Kong (15.3%), China (11.4%), and Japan (11.3%). In H1 2026, the trade gap stood at USD 30.8 billion.

Philippine imports climbed by 21.9% year-on-year to USD 13.4 billion in May 2026, following an upwardly revised 27.3% rise in the previous month. The increase was largely driven by a 93.3% jump in electronic products, mainly semiconductor components (+125.8%), followed by electronic data processing (+43.8%) and communication/radar (+42.9%). Inbound shipments also rose sharply for mineral fuels, lubricants and related materials (+35.6%) and telecommunication equipment and electrical machinery (+21.2%), partially offset by declines in transport equipment (-24.3%) and iron and steel (-14.5%). Among the country’s largest trading partners, China remained the top supplier, accounting for 29.4% of total imports, with purchases rising 31.9%. Arrivals also surged from South Korea (+153.9%), Malaysia (84.2%), and Singapore (+20.2%). For the first five months of the year, total imports grew by 16.2% to USD 63.1 billion.