FX.co ★ Philippines Trade Deficit Widens in February

The Philippines’ trade deficit widened to USD 3.7 billion in February 2026, up from USD 3.0 billion a year earlier. Imports surged by 12.6% year-on-year to USD 11.0 billion—the fastest growth since June 2025—driven mainly by higher purchases of electronic products (+39.3%). Within this category, imports of semiconductors rose by 44.6%, electronic data processing equipment by 41.1%, and office equipment by 26.3%.

China remained the Philippines’ largest source of imports, accounting for 28.4% of the total, followed by South Korea (12.5%), Japan (8.5%), and Indonesia (7%).

Exports grew at a more modest pace, rising 8% year-on-year to USD 7.3 billion—the slowest increase in six months. Export growth was led by electronic products (+20.5%), machinery and transport equipment (+47.7%), and gold (+132.2%). The United States was the top export destination, taking 19.3% of total shipments, followed by Hong Kong (16%), Japan (13.5%), and China (9.1%).

For the first two months of 2026, the cumulative trade deficit inched up to USD 8.0 billion from USD 7.9 billion in the same period a year earlier.