Philippines sees trade deficit narrow in September, bolstered by exports surge

THE country’s trade deficit narrowed in September from a year earlier following a double-digit exports surge and an imports rebound, data from the Philippine Statistics Authority (PSA) showed on Thursday.

The $4.35-billion shortfall, 14.7 percent lower than the $5.1 billion recorded in the same month last year, came as exports grew by 15.9 percent to $4.35 billion and imports expanded 2.1 percent to $11.6 billion.

Exports improved from 5.5 percent in August and reversed from a 7.6-percent drop a year earlier, while imports growth rebounded from the previous month’s -0.3 percent but was lower than September 2024’s 10.1 percent.

Year to date, the trade deficit fell by 5.7 percent to $37.17 billion from $39.43 billion in January-September last year. Exports were 13.1 percent higher on an annual basis at $63.02 billion while imports rose 5.3 percent to $100.19 billion.

Total merchandise trade totaled $18.86 billion in September, up 7.0 percent from $17.62 billion a year ago. The nine-month tally was also higher at $163.21 billion from $150.85 billion.

Electronics remained the country’s biggest export, accounting for $4.02 billion or 55.5 percent of the total. This was followed by other mineral products ($413.79 million, 5.7 percent) and other manufactured goods ($375.1 million, 5.2 percent).

The United States was the biggest buyer of Philippine-made goods with a 15.3-percent share or $1.11 billion. Rounding up the top five export markets were Hong Kong, ($1.1 billion or 15.1 percent of the total), China ($959.19 million, 13.2 percent), Japan, $883.33 million, 12.2 percent) and the Netherlands ($325.78 million, 4.5 percent).

Imports of raw materials and intermediate goods, meanwhile, had the biggest share of inbound shipments in September at $4.13 billion or 35.6 percent. Following were capital goods ($3.77 billion or 32.4 percent) and consumer goods ($2.38 billion, 20.5 percent).

China was the largest supplier, having sold $3.29 billion worth of goods to the Philippines or 28.4 percent of total imports for the month.

South Korea was next at $1.06 billion or 9.1 percent, followed by Japan ($935.07 million, 8.1 percent), Indonesia ($821.42 million, 7.1 percent) and the US ($728.88 million, 6.3 percent).

Metrobank, in a report, said an increase in capital imports indicated higher private investments. It said businesses were likely to maintain a healthy level of imports amid lower interest rates but warned that weaker sentiment could weigh on capital investments.

The narrower third-quarter trade deficit of $12.8 billion (down 11.2 percent from $14.4 billion a year ago) could support economic growth for the period, which Metrobank said could have hit 5.2 percent.

The bank forecast sustained exports growth for the rest of the year given robust demand for semiconductors, but said US President Donald Trump’s plan to impose a 100-percent tariff “could alter this view.”

Goods imports, meanwhile, are expected to post slower growth in the near term but accelerate past that as monetary easing boosts consumer and investment spending.