The Philippines' trade deficit expanded by 50.5 percent in May 2026 compared to the same month last year, driven by a sharper increase in imports relative to exports, according to preliminary data from the Philippine Statistics Authority (PSA).
Trade deficit reaches $5.48 billion
The country's balance of trade in goods recorded a deficit of $5.48 billion in May, up from $3.64 billion in May 2025. However, the deficit narrowed from $5.04 billion in April. The widening gap reflected a 21.9 percent year-on-year surge in imports to $13.36 billion, while exports rose only 7.6 percent to $7.87 billion.
Total external trade in goods increased 16.1 percent to $21.23 billion in May from $18.28 billion a year earlier. Imports accounted for 62.9 percent of total trade, while exports represented 37.1 percent.
Record first five months
For the January-to-May period, exports climbed 10.6 percent to a record $37.87 billion, while imports increased 16.2 percent to an all-time high of $63.11 billion. The sustained demand for imported raw materials, capital equipment, and electronic components drove the import growth.
Electronic products remained the top export category, generating $4.30 billion or 54.6 percent of total export earnings in May. Machinery and transport equipment followed with $441.61 million, and other mineral products contributed $406.78 million.
Top trading partners
The United States was the Philippines' largest export market in May, accounting for $1.35 billion or 17.2 percent of total exports. It was followed by Hong Kong, Japan, China, and Singapore. On the import side, China remained the biggest source with $4.23 billion, representing 31.7 percent of total imports. South Korea, Indonesia, Malaysia, and Japan completed the top five suppliers.
Composition of trade
Electronic products also dominated imports, accounting for $4.63 billion or 34.7 percent of the total. Mineral fuels ranked second at $1.75 billion, followed by transport equipment at $806.83 million. Manufactured goods made up 78.2 percent of Philippine exports, while raw materials and intermediate goods accounted for 40.9 percent of imports, highlighting the country's reliance on imported inputs for domestic production and exports.
