Philippines Import Growth Hits 6-Month Low

Philippine imports rose 16.6% year-on-year to a six-month low of USD 13 billion in August 2026, slowing from an upwardly revised 23% in the previous month. It marked the weakest annual growth since February, as imports declined for industrial and machinery equipment (-7.1%), other food and live animals (-24.2%), miscellaneous manufactured articles (-8.4%), and iron and steel (-27.1%). Meanwhile, imports of electronic products surged 61.4%, driven mainly by components/devices (82.4%) and electronic data processing equipment (13.7%). Import growth was also supported by mineral fuels, lubricants and related materials (38.6%) and transport equipment (0.6%). China remained the Philippines’ largest source of imports, accounting for 22.7% of the total despite falling 11.1%. Imports from South Korea (212.6%), Japan (21.2%), and Indonesia (4.3%) increased. In the first eight months of the year, the country's total imports reached USD 105.6 billion.

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.