The Philippines recorded its widest trade deficit in six months for March 2026, reaching $4.5 billion, according to data from the Philippine Statistics Authority (PSA). While the gap widened just 0.1% from a year earlier, it surged over 12% month-on-month from February’s revised $4 billion level.
Exports jumped 20.4% to $6.78 billion, while imports rose 12.3% to $11.29 billion. Both figures were the highest since the PSA began tracking trade data in 1991.
Economists had anticipated a larger deficit, attributing the rising import costs to the ongoing conflict in the Middle East. The war has pushed up prices for key commodities, particularly energy, which heavily influences the Philippines’ import bill.
The trade deficit’s expansion underscores the challenges faced by the Philippine economy as it navigates global uncertainties, with higher import costs potentially weighing on the country's balance of payments.