THE Philippines’ trade deficit narrowed by 17.8 percent year on year to $4.05 billion in January 2026, as export growth outpaced a decline in imports, according to data from the Philippine Statistics Authority.
Despite the improvement, the January shortfall was the widest since October 2025’s $4.19 billion deficit. The balance of trade in goods reflects the difference between exports and imports.
Total external trade in goods in January reached $18.24 billion, up 0.9 percent from $18.07 billion a year earlier. Imports accounted for 61.1 percent of total trade, while exports made up 38.9 percent. Growth, however, eased from the double-digit expansions recorded in December 2025 (16.5 percent) and January 2025 (10.6 percent).
Exports up 7.9%
Export receipts climbed 7.9 percent to $7.09 billion, the highest level since October. Electronic products drove the increase, posting a $634.18-million annual gain. Gold rose by $354.18 million, while machinery and transport equipment expanded by $155.57 million.
Electronic products remained the country’s top export at $4.01 billion, accounting for 56.5 percent of total shipments. Gold contributed $488.84 million (6.9 percent), while machinery and transport equipment generated $383.18 million (5.4 percent).
Manufactured goods comprised the bulk of exports at $5.63 billion (79.3 percent), followed by mineral products at $732.32 million (10.3 percent) and agro-based products at $573.84 million (8.1 percent).
The United States of America was the Philippines’ top export market, with shipments valued at $1.16 billion or 16.4 percent of total exports. Other key destinations were Hong Kong, Japan, the People’s Republic of China and the Republic of Korea.
Exports to economies under the Asia-Pacific Economic Cooperation accounted for 81 percent of total outbound shipments.
Imports decline 3.1%
Imports fell 3.1 percent year on year to $11.14 billion, reversing the double-digit growth seen in previous months.
The largest annual decline was recorded in mineral fuels, lubricants and related materials, which dropped by $403.97 million. Imports of metalliferous ores and metal scrap and iron and steel also posted significant decreases.
Electronic products remained the top import commodity at $2.99 billion (26.8 percent), followed by mineral fuels at $1.21 billion (10.9 percent) and transport equipment at $877.92 million (7.9 percent).
The People’s Republic of China was the country’s largest source of imports at $3.26 billion, accounting for 29.2 percent of the total. It was followed by the Republic of Korea, Japan, Indonesia and the United States.
By economic bloc, Apec member economies supplied 87.5 percent of total imports, with East Asia contributing the largest regional share. / KOC