April trade gap widest in nearly four years

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May 30, 2026 | 12:00am

MANILA, Philippines — The Philippines posted its biggest trade deficit in almost four years in April as import growth outpaced export gains due to higher fuel costs linked to the Middle East conflict.

Preliminary data from the Philippine Statistics Authority (PSA) showed that the balance of trade in goods or the difference between exports and imports in April booked a deficit of $5.97 billion, the highest recorded since August 2022, when the trade gap was at $5.99 billion.

The April trade deficit was also 50 percent higher than the $3.98-billion shortfall recorded in the same month last year.

As of end-April, the country also registered a wider trade gap of $19.28 billion compared to the $16.44-billion deficit in the same period a year ago.

Goods imported by the country jumped by 22 percent to $13.17 billion in April from $10.77 billion in the same month of 2025.

While the April import value rose year-on-year, the PSA said it was the lowest since February 2026, when it reached $11.4 billion.

China remained the country’s largest source of imports, accounting for $3.92 billion or 30 percent of the total in April.

From January to April, the total import value grew by 14 percent to $49.22 billion from $43.36 billion in the same period last year.

“The total import value from January to April 2026 was the highest recorded since the series began in 1991,” the PSA said.

PSA data also showed that exports went up by six percent to $7.21 billion in April from $6.78 billion in the same month of 2025.

The April export value is the lowest since January this year, when it amounted to $7.14 billion.

By major trading partner, the United States accounted for the highest export value amounting to $1.3 billion or 18 percent of the country’s total exports in April.

From January to April, Philippine exports rose by 11 percent to $29.93 billion from $26.93 billion in the same period last year. This was the highest recorded since the PSA began tracking the data in 1991.

Chinabank Research said the latest trade performance reflects spillovers from the Middle East conflict, as elevated oil prices inflated the import bill, disrupting supply chains and weighing on consumer sentiment.

“A potential resolution of the US–Iran war–which could ease oil prices–along with subdued domestic demand curbing import volumes, should help narrow the trade deficit later this year,” it said.

In terms of exports, Chinabank Research said that the 4.7 percent decline in semiconductors in April may be temporary, as easing geopolitical uncertainties and optimism around artificial intelligence are likely to drive a rebound in export momentum.

Even as Philippine exports are likely to continue rising on a year-on-year basis in the coming months, Moody’s Analytics economist Sarah Tan said in an email that the momentum is likely to remain weak.

“While exports should continue to benefit from some underlying resilience in electronics demand, the ongoing conflict in the Middle East is weighing on global growth and business sentiment, which could dampen demand from key export markets,” Tan said.

At the same time, she said that exporters’ production and transport costs are rising due to higher commodity and energy prices.

Earlier, Trade Secretary Cristina Roque said the Department of Trade and Industry is hopeful that the country would achieve record-high exports this year after last year’s historic performance.

Philippine merchandise exports hit $84.48 billion last year, the highest value recorded since tracking started in 1991.