Trade balance improves as deficit narrows to lowest in 15 months

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October 1, 2026 | 12:00am

MANILA, Philippines —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.

Preliminary PSA data showed that the balance of trade in goods, or the difference between export and import values, amounted to a $3.85-billion deficit in August, down from $3.99 billion in the same month last year.

The PSA said the August trade deficit was the lowest recorded since May last year, when the shortfall was $3.64 billion.

Philippine export sales rose by 28 percent to $9.11 billion in August from $7.13 billion in the same month last year.

“The export sales in August 2026 were the highest recorded since the series began in 1991,” the PSA said.

Electronic products remained the country’s top exported commodity in August, accounting for $6.20 billion or 68 percent of total exports during that month.

In terms of export markets, the United States recorded the highest export value, amounting to $2.17 billion, or 24 percent of the total, in August.

Meanwhile, imports climbed by 17 percent to $12.96 billion in August from $11.12 billion a year ago.

The August import value was the lowest recorded since February, when it amounted to $11.40 billion.

By commodity group, electronic products had the highest import value, at $4.51 billion, or 35 percent of the total in August.

China remained the country’s largest source of imported goods valued at $2.94 billion or 23 percent of total imports in August.

Commenting on the data, Chinabank Research said the trade deficit narrowed in August for the first time since January, driven by strong demand for electronics and semiconductor products that boosted exports.

“However, the improvement may prove difficult to sustain as electronics-related imports are also rising,” Chinabank Research said.

It said that the country’s imports growth reflects higher commodity prices and the move to secure supply ahead of the El Niño phenomenon.

From January to August, the country’s trade deficit widened by 26 percent to $41.56 billion from $32.90 billion in the same period last year.

During the eight months, exports rose by 15 percent to $64.04 billion from $55.8 billion a year ago.

The export value during the eight-month period was the highest since the government began tracking performance in 1991.

Import value from January to August grew by 19 percent to $105.60 billion from $88.69 billion in the same period last year.

“The total import value from January to August 2026 was the highest recorded since the series began in 1991,” the PSA said.