Philippine trade deficit widens to $4.94 billion in June

Trade gap grows at a slower pace as exports remain strong and business activity continues.

The Philippines posted a $4.94-billion trade deficit in June as imports continued to outpace exports, although the increase slowed sharply from the previous month.

The June trade deficit was 12.3% higher than a year earlier, making it the smallest recorded since February 2026, according to the Philippine Statistics Authority (PSA). The increase also eased significantly from May’s 67.6%, suggesting the country’s trade balance may be stabilizing after a sharp widening in previous months.

A wider trade deficit means the country is buying more goods from overseas than it is selling, but economists said the latest figures also point to businesses continuing to invest in production while overseas demand for Philippine products remains healthy.

Senior research fellow John Paul Rivera of the Philippine Institute for Development Studies said sustained demand for Philippine exports, particularly electronics, alongside continued imports of raw materials, machinery, and other production inputs, shows economic activity remains strong despite global uncertainty.

Rivera expects the trade deficit to remain elevated in the coming months but said it could stabilize in the second half of the year if export momentum continues and global demand holds up. He said geopolitical tensions and higher US tariffs remain key risks, as both could drive up shipping and energy costs while dampening demand in overseas markets.

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