Trade deficit swells to widest level in H1

MANILA, Philippines —  The country’s trade gap hit its highest level in the first semester as imports growth outpaced exports, according to the Philippine Statistics Authority (PSA).

Revised data from the PSA showed that the country’s balance of trade in goods (BoT-G) – the difference between exports and imports – amounted to a $31.36-billion deficit. This is 28 percent higher than the $24.48-billion shortfall in the same period last year.

“The BoT-G in the first semester of 2026 was the highest deficit recorded since the series began in 1991,” the PSA said.

Philippine exports of goods in the first half grew by 13 percent to $46.78 billion from $41.31 billion in the same semester last year.

The PSA said the first semester export sales figure is also the highest recorded since tracking started in 1991.

By commodity group, electronic products remained the country’s top exported commodity in the first semester, with total earnings of $26.12 billion or 56 percent of the total during the period.

In terms of trade partners, the United States was the top market for Philippine exports, accounting for $8.45 billion or 18 percent of the total in the first half.

Meanwhile, imports from January to June rose by 19 percent to $78.14 billion from $65.79 billion in the same semester last year.

The first semester import value was likewise the highest recorded since the series began in 1991.

Electronic products also recorded the highest import value, amounting to $23.76 billion or 30 percent of the country’s total imports from January to June.

As for the country’s import sources, China remained the largest supplier with a $23.23-billion or 30 percent share in the first semester.

At present, the Philippines is pushing for more free trade agreements to expand its market for exports.