FX.co ★ Philippines Trade Deficit Smallest in Over a Year

The Philippines’ trade deficit narrowed to USD 3.8 billion in August 2026, down from USD 4.0 billion in the same month a year earlier. This was the smallest gap since May 2025, supported by a sharp rebound in exports, which jumped 27.8% year-on-year to USD 9.1 billion— their highest level in two years.

Export growth was led by electronic products, which surged 59.9%, driven in particular by semiconductors, up 73.5%. Shipments of other mineral products (+1.8%) and gold (+15.0%) also increased. The United States remained the Philippines’ largest export market, accounting for 23.8% of total exports, followed by Hong Kong (17.3%), China (11.5%), and Japan (7.7%).

Imports, however, also grew strongly, rising 16.6% year-on-year, reflecting higher purchases of electronic products (+61.4%), mineral fuels, lubricants, and related materials (+38.6%), as well as cereals and cereal preparations (+26.6%). China was the country’s main source of imports, with a 22.7% share, followed by South Korea (21.1%) and Japan (7.3%).

Over the January–August period, the cumulative trade deficit widened to USD 41.6 billion from USD 32.9 billion in the same period a year earlier.