PH trade gap widened in Feb 2026 as importers replenished stocks
The Philippines’ trade deficit widened for the first time in eight months in February as import growth outpaced exports, with risks of a wider gap ahead amid the escalating Middle East war.
Data from the Philippine Statistics Authority (PSA) showed the country’s trade deficit swelled by 23.1 percent year-on-year to $3.68 billion in February.
However, the February deficit was narrower than the revised $4.27-billion shortfall in January and marked the smallest deficit in nine months.Leonardo Lanzona, economist at Ateneo de Manila University, said this was likely due to seasonal factors.
“The January figure was seasonally bloated by post-holiday import restocking and front-loading ahead of anticipated US tariff changes,” he said.
On a year-on-year basis, imports rose by 12.6 percent to $11.01 billion. But this was the lowest level since November 2025, helping temper the trade gap from the previous month.
Exports, meanwhile, increased by 8 percent to $7.33 billion from $6.79 billion in February 2025.
This marked the 14th consecutive month of export expansion and the highest monthly level since October 2025.
The Philippines’ total exports as of February 2026 reached $14.47 billion, an 8.3-percent increase from the same period last year, marking the highest export level for the first two months since 1991, according to the PSA.
Trade Secretary Ma. Cristina A. Roque said in a statement that the latest figures reflect steady global demand and affirm the Philippines’ expanding trade reach, supported by a stronger network of free trade agreements.
For the first two months of the year, total imports reached $22.43 billion.
Electronic products remained the country’s top export and import commodities.
The escalation of war in the Middle East poses a significant risk to the country’s trade momentum, given the disruption of the global supply chain with the Strait of Hormuz being virtually shut.
