PH trade deficit narrows to 15-month low in August 2026

The Philippine trade deficit narrowed to a 15-month low in August 2026 as imports declined from the previous month while exports climbed, preliminary government data released on Wednesday showed.

The balance of trade in goods — the difference between the value of exports and imports — posted a $3.849-billion deficit in August, lower than the $6.345-billion deficit in July and the $3.988-billion deficit a year ago. This is also the lowest in 15 months since the $3.641-billion deficit recorded in May 2025.

A trade deficit means a country bought more goods from other countries than it sold to them, while a trade surplus means it sold more goods abroad than it bought from other countries.

Imports for the month stood at $12.961 billion, down from $14.501 billion in July, but higher than the $11.116 billion in August 2025. This is the lowest since the $11.40-billion worth of goods received in February 2026.

Electronics had the highest import value at $4.51 billion, driven by a $1.713-billion increase, the highest annual increase among all the commodity groups.

Mineral fuels, lubricants, and related materials followed with $1.853 billion, transport equipment with $906.05 million, industrial machinery with $486.77 million, and cereals with $462.44 million.

In terms of major types of goods, raw materials and intermediate goods accounted for the largest share of imports for the month, at $5.14 billion, or 39.7%. This was followed by capital goods with $3.60 billion or 27.8%, and consumer goods with $2.31 billion or 17.8%.

China was the biggest source of imports for the month with $2.94 billion or 22.7%, South Korea with $2.73 billion or 21.1%, Japan with $939.85 million or 7.3%, Indonesia with $893.22 million or 6.9%, and the United States with $717.56 million or 5.5%.

Exports were $9.111 billion, up from $8.156 billion the previous month and $7.127 billion in the same month last year.

Electronic products also continued to be the biggest export, at $6.20 billion or 68.1%. Mineral products came in at $393.54 million or 4.3%, and gold at $321.27 million or 3.5%.

By major types of goods, manufactured goods had the biggest share of total exports, at $7.69 billion or 84.4%. Mineral products followed with $800.62 million or 8.8%, and total agro-based products at $455.26 million or 5.0%.

The United States was the biggest recipient of Philippine exports during the month, accounting for $2.17 billion or 23.8%. Hong Kong followed with $1.57 billion or 17.3%, China with $1.05 billion or 11.5%, Japan with $704.49 million or 7.7%, and Taiwan with $516.01 million or 5.7%.

Total trade for the month stood at $22.073 billion, slightly lower than the $22.657 billion in July, but 21.0% higher than the $18.244 billion last year. —AOL, GMA News