THE country’s trade deficit rose to nearly $6 billion in July amid double-digit growth for both exports and imports, preliminary data released by the Philippine Statistics Authority (PSA) showed on Friday.
The $5.97-billion shortfall for the month was 34.9 percent higher than the $4.43 billion and $5.5 billion seen a year and a month earlier, respectively. It was also the highest since the $6.10 billion seen in May this year.
Exports grew by 10.8 percent to $8.15 billion although growth slowed from 17.1 percent in July 2025 and the 25.0 percent posted in June.
Imports totaled $14.12 billion, 19.8 percent up and markedly higher than the year-earlier expansion of 5.9 percent. Again, growth was slower compared to June, which saw inbound shipments increase by 25.0 percent.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the wider trade deficit was partly due to the war in the Middle East, which had raised the cost of oil, fuel, and other commodities that the Philippines purchases from abroad.
Total external trade grew 16.3 percent to $22.27 billion, which the PSA said was the lowest since May’s $22.0 billion. Growth improved from July 2025’s 10.1 percent but eased from the year-ago 25.0 percent.
Year-to-date, exports grew 12.9 percent to $54.92 billion while imports increased by 18.9 percent to $92.26 billion. These were also the highest recorded since the series began in 1991, the PSA said.
Electronic products remained the country’s top export at $4.79 billion, accounting for 58.8 percent of total outbound shipments. This was followed by other manufactured goods ($371.46 million, 4.6 percent) and other mineral products ($366.26 million, 4.5 percent).
The United States was the top buyer with a 20.7 percent share, or $1.68 billion, of Philippine exports. Other countries in the top five were Hong Kong ($1.29 billion, 15.9 percent), China ($919.82 million, 11.3 percent), Japan ($856.60 million, 10.5 percent), and Singapore ($401.17 million, 4.9 percent).
Electronic products were also the country’s top import at $4.60 billion, or 32.6 percent, of the total. Mineral fuels, lubricants, and related materials followed at $1.95 billion (13.8 percent) and with transport equipment at $976.95 million (6.9 percent).
China was the country’s top source of imported goods at $4.17 billion, or a 29.5-percent share. Other major suppliers were South Korea ($1.80 billion, 12.7 percent), Japan ($1.11 billion, 7.9 percent), Indonesia ($807.75 million, 5.7 percent) and the United States ($766.61 million, 5.4 percent).
