Philippines Starts 2026 With a $4 Billion Trade Deficit — Imports Still Outpacing Exports as Gap Widens
The Philippines kicked off 2026 with a wider trade deficit, as the gap between what the country buys and sells to the world grew to $4.048 billion in January. That's up from December's $3.993 billion deficit, though still narrower than the $4.926 billion hole recorded in January 2025, according to fresh data from the Philippine Statistics Authority.
Exports for the month reached $7.093 billion, up 7.9% from January last year. Electronic products remained the top export at $4.01 billion — making up 56.5% of all outward shipments. Gold came in second at 6.9%, followed by machinery and transport equipment. The US was the biggest buyer of Philippine goods at $1.16 billion, with Hong Kong close behind at $1.12 billion.
On the import side, the country brought in $11.141 billion worth of goods. Raw materials and intermediate goods took the largest share at 34.7%, followed by capital goods at 33.9%. China continued to dominate as the Philippines' biggest source of imports at $3.26 billion or 29.2% — almost three times what the country buys from the US.
The silver lining? Imports actually fell 3.1% compared to January 2025, largely thanks to drops in mineral fuels (down $404 million) and metalliferous ores. Total trade for January stood at $18.235 billion, a slight 0.9% increase year-on-year.
Para sa mga economist, the widening deficit signals that domestic demand remains strong — Filipinos and businesses are consuming more than they're producing for export. Whether that's sustainable long-term is another question, especially with global trade tensions and the peso's ongoing dance with the dollar.
Source: GMA News
