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Philippine Trade Deficit Widens 49.8% in April as Export Growth Slows

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Philippine Trade Deficit Widens 49.8% in April as Export Growth Slows

The Philippines' trade deficit widened sharply in April as import growth significantly outpaced exports.

The trade gap ballooned 49.8% year over year to $5.97 billion, marking a steep acceleration from the 11.4% deficit growth recorded in Marchm according to Friday data from the Philippine Statistics Authority.

Imports surged 22.4% from a year earlier to $13.2 billion, up from the 17% growth seen the previous month. Meanwhile, exports rose 6.3% to $7.21 billion, a notable slowdown from March's 20.8% jump.

Electronic products posted the highest annual increase among imports, climbing by $1.85 billion. Despite global supply chain disruptions triggered by the Middle East conflict, domestic demand for gadgets, such as smartphones, computers, and cameras-remained robust.

A December 2025 report from Statista noted that the Philippines' growing middle class continues to drive consumption of these goods, with the broader electronics sector forecast to expand steadily over the next five years.

This was followed by mineral fuels, which increased by $1.31 billion, and animal feed, which rose by $57.4 million. China remained the country's largest supplier, providing $3.92 billion worth of goods, or 29.7% of total imports.

On the export front, machinery and transport equipment recorded the largest annual gain, rising by $187.6 million. This was followed by coconut oil and other mineral products, which saw increases of $173 million and $163.6 million, respectively.

The US remained the top destination for Philippine exports, taking in $1.30 billion, or 18% of the total. China and Japan followed as the second and third largest export markets, each accounting for a share of about 13%.

The widening trade imbalance may add further weight to the Philippines' pre-existing weakness, which is already pressured by the Middle East conflict.

"Excluding the pandemic period, the pace of increase was the slowest since 2010. Prospects for a meaningful turnaround are also not favorable with household expectations of economic conditions weakening anew," ANZ Chief Economist Sanjay Mathur said.

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