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The country recorded its highest six-month external merchandise trade and trade deficit in the first half of 2026
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The balance of trade in goods for January-June 2026 reached US$-31.36 billion, indicating a trade deficit with an annual increase of 28.1%
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Total external trade during the period grew 16.6% year-on-year to $124.92 billion
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Imports rose 16.6% year on year to $124.92 billion while exports expanded 13.2% to $46.78 billion, also the highest six-month figures for imports and exports since 1991
The country recorded its highest six-month external merchandise trade and trade deficit in the first semester of 2026, according to data from the Philippine Statistics Authority (PSA).
The balance of trade in goods for January-June 2026 reached US$-31.36 billion, indicating a trade deficit with an annual increase of 28.1%, the highest first semester deficit recorded since PSA started its external merchandise trade series in 1991.
Total external trade in the first semester of 2026 grew 16.6% year-on-year to $124.92 billion, also the highest first semester external trade recorded since 1991.
Similarly, imports and exports during the period recorded their highest six-month value since 1991.
Imports accounted for 62.6% of the total with $78.14 billion, an increment of 18.8% from the $65.79 billion recorded in the first semester of last year. Among the commodity groups, imports of electronic products, mineral fuels, lubricants and related materials; and cereals and cereal preparations posted the highest annual increase in value.
Exports likewise expanded 13.2% to $46.78 billion from $41.31 billion in the first semester of the previous year. Exports of electronic products also had the biggest increase during the period, followed by gold, and machinery and transport equipment.
Electronic products also remained the country’s top commodity.
Imports of electronic products in the first half of the year amounted to $23.76 billion, accounting for a 30.4% share to the total imports during the period. It was followed by mineral fuels, lubricants and related materials at $11.12 billion (14.2%), and transport equipment at $5.45 billion (7%).
Electronic products were also the top export commodity, earning $26.12 billion or a share of 55.8% of the total. Exports of machinery and transport equipment followed with $2.49 billion (5.3%), and gold with $2.22 billion (4.8%).
In terms of major types of goods, imports of raw materials and intermediate goods shared the largest share of the total imports in the first semester with $29.91 billion or 38.3%. Capital goods placed second with $22.86 billion (29.3%), and consumer goods at third with $13.95 billion (17.9%).
For exports, manufactured goods contributed the largest share of $36.98 billion or 79.1%, followed by mineral products with $4.67 billion (10%), and total agro-based products with $ 3.99 billion (8.5%).
China remains the country’s top import source, accounting for $23.23 billion or 29.7% of the total in the first half of the year. The four other top import sources for the period were South Korea, $9.35 billion (12%); Japan, $5.91 billion (7.6%); Indonesia, $5.15 billion (6.6%); and the U.S., $4.39 billion (5.6%).
The U.S., meanwhile, was the top export destination during the period with an export value of $8.45 billion or a share of 18.1%.
Other top export destinations were Hong Kong, $7.11 billion (15.2%); Japan, $5.78 billion (12.4%); China, $5.21 billion (11.1%); and Singapore, $2.21 billion (4.7%).
READ: PH trade deficit widens 34.9% to $6B in July 2026
