The Philippines’ posted a substantial trade deficit of USD5.09 billion in January, widening from the USD4.36 billion trade gap in the same month last year, as export growth failed to keep pace with the rise in imports. This wider trade deficit highlights the country’s persistent struggle to meet its domestic needs through local production and its inability to identify new export drivers to strengthen its economic position.
Data released by the Philippine Statistics Authority (PSA) on Friday showed that exports in January rose by 6.3 percent year-on-year to USD 6.36 billion, while total imports amounted to USD 11.45 billion, up 11 percent from January 2024. This marked the first expansion in exports since August of the previous year, when they posted a modest 0.3 percent year-on-year growth.
The PSA highlighted that the commodity group with the highest growth in export value for the month was other manufactured goods, which surged by 67 percent to USD471.1 million. Coconut oil followed closely, with export receipts rising 80 percent to USD249.1 million. Other mineral products ranked third, with exports valued at USD 247.1 million, up 33 percent.
Despite these gains, electronics products remained the Philippines’ top export, contributing USD3.37 billion, or 53 percent, of total exports. However, this represented a 2.6 percent decline from the USD3.46 billion recorded in January 2024.
The United States continued to be the Philippines’ largest export market in January, accounting for about 18 percent of total exports. Japan, Hong Kong, China, and Singapore—in that order–rounded out the top five export destinations.
On the import side, the commodity group with the largest increase in value was electronics products, which grew by USD 312.62 million to reach USD 2.51 billion. This was followed by telecommunications equipment and electrical machinery, which rose by USD 126.38 million to USD 439.2 million, and mineral fuels, lubricants, and related materials, which increased by USD 107.56 million to USD 1.62 billion.
In terms of import sources, China remained the largest supplier, providing about 29 percent of total imports in January, or USD 3.31 billion. Japan, Indonesia, South Korea, and the United States were the other major sources, together accounting for just over 29 percent of total imports.
