Philippine trade deficit widens year on year to $5.481B in May 2026

The Philippines' trade deficit narrowed month on month in May as imports declined while exports increased, preliminary data released by the Philippine Statistics Authority (PSA) on Tuesday showed.

The country's balance of trade in goods — the difference between the value of exports and imports — posted a $5.481-billion deficit in May, narrower than the $6.429 billion recorded in April but wider than the $3.641 billion logged in the same month last year.

A trade deficit means the value of imports exceeded export earnings, while a surplus indicates exports surpassed imports.

Imports totaled $13.355 billion in May, down from $13.703 billion in April but up from $10.959 billion a year earlier.

Electronic products remained the country's top import at $4.63 billion, followed by mineral fuels, lubricants and related materials ($1.75 billion), transport equipment ($806.83 million), industrial machinery and equipment ($516.89 million), and other food and live animals ($515.57 million).

By major types of goods, raw materials and intermediate goods accounted for the largest share of imports at $5.46 billion (40.9%), followed by capital goods at $3.73 billion (28.0%) and consumer goods at $2.37 billion (17.7%).

China remained the Philippines' largest source of imports at $4.23 billion (31.7%), followed by South Korea ($1.76 billion), Indonesia ($858.79 million), Malaysia ($813.09 million), and Japan ($806.32 million).

Meanwhile, exports rose to $7.873 billion in May from $7.274 billion in April and $7.318 billion in May 2025.

Electronic products also led the country's exports at $4.30 billion, followed by machinery and transport equipment ($441.61 million), other mineral products ($406.78 million), other manufactured goods ($370.75 million), and gold ($329.69 million).

By major type of goods, manufactured goods accounted for the largest share of exports at $6.16 billion (78.2%), followed by mineral products at $791.23 million (10.0%) and agro-based products at $698.78 million (8.9%).

The United States remained the top destination for Philippine exports at $1.35 billion (17.2%), followed by Hong Kong ($1.20 billion), Japan ($1.03 billion), China ($905.20 million), and Singapore ($442.55 million).

Total merchandise trade reached $21.229 billion in May, higher than $20.978 billion in April and $18.278 billion in the same month last year. — VBL, GMA News