THE country’s trade deficit widened in June from a year earlier on higher imports and exports, preliminary data from the Philippine Statistics Authority (PSA) showed on Thursday.
At $4.94 billion, the shortfall was 12.3 percent higher than the $4.4 billion posted a year earlier. It narrowed, however, from the $6.1 billion seen in May.
Total trade in goods reached $22.48 billion in June with imports accounting for $13.71 billion and exports $8.78 billion, up by 19.6 percent and 24.1 percent compared to a year ago.
The June deficit, the PSA said, was the lowest since February’s $4.01 billion, while total merchandise trade was the highest since 1991.
Exports were also the highest since 1991 but imports were the lowest since April, it added.
Imports growth improved from the year-earlier 15.6 percent but exports were slower than the 26.9 percent posted in June 2025. On a monthly basis, imports slowed from May’s 28.2 percent while exports surged from 8.6 percent.
Year to date, the trade deficit rose to $30.81 billion, up 12.3 percent from the $24.48 billion recorded in the first half of 2025.
Cumulative imports and exports since the start of 2026 were also the highest since 1991, the PSA said.
Electronic products remained the country’s top export at $5.25 billion, accounting for 59.9 percent of outbound merchandise shipments. This was followed by other mineral products ($414.85 million, 4.7 percent) and other manufactured goods ($401.37 million, 4.6 percent).
The United States was the biggest buyer of Philippine-made goods with a 20.1 percent share worth $1.76 billion. Rounding out the top five were Hong Kong ($1.34 billion, 15.3 percent), China ($1.0 billion, 11.4 percent), Japan ($990.16 million. 11.3 percent) and Singapore ($508.18 million, 5.8 percent).
Electronics were also the country’s top import at $4.77 billion or 34.8 percent of the June total. Mineral fuels, lubricants and related materials were next at $1.62 billion (11.8 percent), followed by transport equipment ($998.94 million, 7.3 percent).
China was the country’s top source of imports at $4.35 billion, or 31.7 percent of the total. Other major suppliers were South Korea ($1.78 billion, 13 percent), Japan ($919.13 million, 6.70 percent), Indonesia ($912.63 million, 6.66 percent),and the US ($706.70 million, 5.2 percent).
Rizal Commercial Banking Corp. chief economist Michael Ricafort said a weaker peso had made exports more price-competitive and imports more expensive.
The record exports came amid a diversification of markets, he added, and front-loading by buyers were also said to be a factor.
Frontloading also supported imports, Ricafort continued, given concerns over the impact of the US-Iran war.
“[F]uture Philippine external trade data would largely be a function of developments related to the war on Iran/Middle East in terms of the impact on global oil and other commodity prices, as well as global oil/energy and other commodity supply chains worldwide,” he said.
Ricafort added that the United States’ latest tariff salvo — the Philippines has been slapped a 12.5-percent duty for failing to halt imports of goods made using forced labor — would likely weigh on merchandise trade.
Trade Secretary Ma. Cristina Roque, meanwhile, welcomed the exports result.
“The historic export performance is a testament to the hard work, resilience and dedication of our Filipino exporters,” she said.
“Despite uncertainties in global trade, they continue to invest in their businesses, create opportunities for our people and proudly carry the Philippine brand into markets around the world.”
