Philippine exports rise at fastest in five years on weak peso, AI boom

Philippine exports surged to a record high in September, marking the fastest increase in five years, according to the country's statistics agency. The Southeast Asian nation's overseas sales reached US$9.87 billion, a 36% rise compared to the same period last year. This impressive growth is attributed to a combination of factors, primarily the depreciating peso and a booming global demand for electronics, particularly artificial intelligence (AI) related products.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., highlighted that "exports at new record high is one of the bright spots in the Philippine economy." The peso has been one of the worst-performing currencies in Asia, falling by 7.6% against the dollar this year, and recently hitting a new low of 64.20 to the dollar due to rising oil prices. This depreciation has positively impacted the country's exports.

The growth in exports was mainly driven by the electronics sector, which is the Philippines' top export. Sales of these products soared by 72% year-on-year, reaching US$6.92 billion. The United States emerged as the primary destination for Philippine products in September, followed by Hong Kong, China, Vietnam, and Japan. Despite the strong export performance, the country's trade deficit remains significant, standing at US$5.15 billion, which is higher than the previous year.