The Philippines’ merchandise trade deficit widened to a record USD31.36 billion in the first semester of 2026, as imports surged nearly 19 percent and outpaced even record export growth.
The Philippine Statistics Authority said the balance of trade in goods deficit rose 28.1 percent year-on-year, the largest since the series began in 1991.
The deterioration came despite exports posting their strongest first-semester performance on record. Export sales rose 13.2 percent to USD46.78 billion from USD41.31 billion a year earlier.
Imports, however, grew faster, climbing 18.8 percent to a record USD78.14 billion from USD65.79 billion.
Imported goods accounted for 62.6 percent of total external trade in the first half, compared with 37.4 percent for exports.
Electronics dominated both sides of the trade ledger. Electronic products generated USD26.12 billion in exports, or 55.8 percent of total export earnings. Shipments of the commodity group increased by USD4.51 billion from a year earlier, the largest gain among major export categories.
Gold exports rose by USD1.03 billion to USD2.22 billion, while machinery and transport equipment increased by USD884.9 million to USD2.49 billion.
On the import side, electronic products accounted for USD23.76 billion, or 30.4 percent of the total. Mineral fuels, lubricants and related materials followed at USD11.12 billion, while transport equipment reached USD5.45 billion.
The composition of imports also points to continued demand for production inputs and investment goods. Raw materials and intermediate goods made up the largest share at USD29.91 billion, or 38.3 percent of total imports.
Capital goods followed at USD22.86 billion, or 29.3 percent, while consumer goods accounted for USD13.95 billion, or 17.9 percent.
The widening gap marks a reversal from the previous trend. The trade deficit had narrowed 13.8 percent in the second semester of 2025 and 2.3 percent in the first semester of 2025.
