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

The Philippines experienced a remarkable surge in exports, marking the fastest growth in five years and reaching a record high in September. The nation's overseas sales reached $9.87 billion, a 36% increase compared to the previous year, according to the country's statistics agency. This rapid expansion is the quickest since April 2021, as reported by Bloomberg.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., highlighted that the exports reached a new record high as one of the positive aspects of the Philippine economy. The rise in exports can be attributed to a depreciating Philippine peso and a surge in global demand for electronics, particularly AI-related products.

The Philippine peso has been among the worst-performing currencies in Asia, falling 7.6% against the dollar this year. The local currency reached a record low of 64.20 to the dollar this week, amid a spike in oil prices. Despite the strong export performance, the country's trade deficit widened to $5.15 billion, remaining wider than a year ago.

Philippine electronics products, the top export category, saw a substantial 72% increase from the previous year, amounting to $6.92 billion. The United States was the primary market for Philippine exports in September, followed by Hong Kong, China, Vietnam, and Japan, as stated by the statistics agency.