Exports jump to record high, keep trade deficit at 4-month low

MANILA, Philippines — Philippine exports jumped 24.1 percent to an all-time high of $8.8 billion, driven by robust demand for semiconductors as countries and companies ramped up investments in artificial intelligence.

Shipments of semiconductors—the Philippines’ biggest export—rose 33.4 percent to $3.8 billion, while exports to the United States, the country’s largest overseas market, climbed 44.7 percent to $1.8 billion.

READ: US slaps Philippine exports with new 12.5% tariff

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This helped keep the country’s trade deficit at its narrowest level in four months.

Data released on Thursday by the Philippine Statistics Authority showed the country’s trade gap expanded 12.3 percent from a year earlier to $4.9 billion, as imports continued to outpace export earnings.

Even so, the June shortfall was the smallest since February, when the deficit stood at $4 billion.

In the first six months of the year, the country’s cumulative trade deficit widened nearly 26 percent from a year earlier to $30.8 billion.

Domini Velasquez, chief economist at China Banking Corp., said rising global demand for semiconductors and other electronics is increasingly shaping the Philippines’ trade profile.

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READ: PH trade deficit worst in Asean

“The strong [exports] growth came despite near-term headwinds such as ongoing warehouse congestion, which disrupted production schedules, raised logistics and storage costs, and put pressure on exporters’ delivery commitments,” Velasquez noted.

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Trade Secretary Cristina Roque said the government would continue leveraging free trade agreements to expand market access for Philippine exporters while encouraging them to strengthen their presence in the domestic market. “Solidifying their base here at home provides a stable platform for sustained growth,” she said.

Imports, meanwhile, rose 19.6 percent to $13.7 billion, though the total was the lowest in two months. Purchases of capital goods, a key gauge of business investment, fell 5.5 percent. INQ