Trade balance improves as deficit narrows to lowest in 15 months
The country’s trade deficit in August narrowed to its lowest level in over a year as exports grew faster than imports, according to the Philippine Statistics Authority.
The Philippine trade deficit contracted to its lowest level in over a year in August, as exports surged faster than imports, according to the Philippine Statistics Authority. The trade deficit for goods, which measures the difference between export and import values, stood at $3.85 billion in August, a decline from $3.99 billion in the same period last year. This marked the smallest deficit since May 2025, with the shortfall then being $3.64 billion.
In August 2026, Philippine exports reached $9.11 billion, a 28% increase compared to $7.13 billion in the same month of the previous year. The PSA noted that August 2026 saw the highest export sales since records began in 1991. Electronic products continued to be the leading export commodity, comprising 68% of total exports at $6.20 billion. The United States was the top export market, purchasing $2.17 billion worth of goods, or 24% of all Philippine exports in August.
Imports expanded by 17% to $12.96 billion in August, the lowest level since February when imports were at $11.40 billion. Electronic products also led the imports, valued at $4.51 billion, or 35% of total imports for the month. China was the primary source of imported goods, accounting for 23% of total imports at $2.94 billion. During the eight months leading up to August, the trade deficit expanded by 26% to $41.56 billion, from $32.90 billion in the comparable period last year.
Exports grew by 15% to $64.04 billion, while imports increased by 19% to $105.60 billion. The PSA emphasized that the total import value for the eight months was the highest since tracking commenced in 1991.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
