Philippines' May Trade Deficit Widens 51% on Faster Import Growth

MANILA, Philippines — The country posted a wider trade deficit in May from a year ago as imports grew at a faster pace than exports, according to the Philippine Statistics Authority (PSA). Data showed that the balance of trade in goods – the difference between exports and imports – amounted to a $5.48-billion deficit in May, 51 percent higher than the $3.64 billion gap in the same month last year. Despite the year-on-year increase, the May trade shortfall is the lowest recorded since the $5.04 billion deficit in March this year. From January to May, the country also posted a wider trade gap of $25.24 billion from $20.08 billion in the same period a year ago. Total imported goods in May rose by 22 percent to $13.36 billion from $10.96 billion in the same month of 2025. The May import value was the lowest recorded since March this year when it amounted to $13.23 billion. Electronic products posted the highest import value of $4.63 billion, accounting for 35 percent of the country’s total imports in May. China remained the country’s top supplier of imported goods, accounting for $4.23 billion or 32 percent of the total in May. From January to May, total Philippine imports rose by 16 percent to $63.11 billion from $54.32 billion in the same period last year. Meanwhile, the country’s export sales went up by eight percent to $7.87 billion in May from $7.32 billion in the same month of 2025. “The export sales in May 2026 was the highest recorded since March 2026 with $8.19 billion,” the PSA said. Electronic products continued to be the Philippines’ top exported commodity group, with total earnings of $4.30 billion or 55 percent of the country’s total exports in May. The United States also maintained its position as the top destination for Philippine exports, accounting for $1.35 billion or 17 percent of total in May. Total exports from January to May amounted to $37.87 billion, 11 percent higher than the $34.25 billion exports value in the same period last year. The PSA said the January to May exports value is the highest recorded since the series began in 1991. Moody’s Analytics economist Sarah Tan said in an email that Philippine exports are expected to continue growing, supported by demand for electronics for artificial intelligence-related investments, but the pace is likely to moderate in the second half of the year. “Uncertainty surrounding the Middle East conflict remains a key risk. The conflict has taken several unexpected turns, and any renewed disruptions could weigh on global business confidence and external demand, slowing export growth,” she said.