Philippines Starts 2026 With a $4 Billion Trade Deficit — Imports Still Outpacing Exports
The Philippines kicked off 2026 with a wider trade deficit as imports continued to outpace exports. The balance of trade in goods hit a $4.048-billion deficit in January, wider than December's $3.993 billion gap — though still narrower than the $4.926-billion deficit recorded in January 2025.
Exports for the month reached $7.093 billion, up 7.9% from the same period last year. Electronic products remained the top export earner at $4.01 billion, accounting for 56.5% of total outward shipments. Gold came in second at 6.9%, followed by machinery and transport equipment at $383.18 million.
The United States continued as the biggest buyer of Philippine goods at $1.16 billion or 16.4% of total exports, followed by Hong Kong at $1.12 billion, Japan at $871.73 million, China at $691.80 million, and South Korea at $391.75 million.
On the import side, the Philippines brought in $11.141 billion worth of goods — slightly higher than December but 3.1% lower than January 2025. China remained the biggest source of imports at $3.26 billion or 29.2%, followed by Korea, Japan, Indonesia, and the US.
Total trade for January stood at $18.235 billion, a modest 0.9% increase from $18.069 billion a year ago. While the deficit widened month-on-month, the year-on-year improvement suggests the country's trade fundamentals are gradually improving — but the import-heavy structure remains a persistent challenge for the Philippine economy.
Source: GMA News
