Philippine exports rise at fastest in five years on weak peso, AI boom

Philippine exports rose at their fastest pace in five years, bringing overseas sales to a new record on the back of global electronics demand and a weak peso.

The Southeast Asian nation exported US$9.87 billion worth of goods in September, up 36% from a year ago, according to the statistics agency. That’s the quickest expansion since April 2021, according to data compiled by Bloomberg.

“Exports at new record high is one of the bright spots in the Philippine economy,” said Michael Ricafort, chief economist at Rizal Commercial Banking Corp.

The growth was driven by the depreciating peso and “a boom in global demand for electronics, especially AI-related,” he said.

The Philippine peso has been one of the worst performers in Asia, depreciating 7.6% against the dollar so far this year. This week, the local currency fell to a new record low of 64.20 to the dollar as oil prices jumped.

Imports rose 26% to US$15.03 billion, bringing the country’s trade deficit to $5.15 billion, still wider than a year ago.

Sales of electronics products, the Philippines’ top exports, rose 72% from a year ago to US$6.92 billion. The US was the top market for Philippine products in September, followed by Hong Kong, China, Vietnam and Japan, the statistics agency said.