THE country's trade deficit widened in September from a year earlier as exports contracted, preliminary data from the Philippine Statistics Authority (PSA) showed.

At $5.08 billion, the shortfall rose from $4.39 billion in August and was also higher than the year-earlier $3.55 billion.

Total trade in goods eased to $17.6 billion from the previous month's $17.89 billion but was higher than September 2023's $17.09 billion.

Imports growth improved to 9.9 percent, from 2.9 percent in August, to $11.34 billion, but exports contracted by 7.6 percent to $6.26 billion following a 0.3-percent rise a month earlier.

Imports accounted for 64.4 percent of total external trade in September, with the rest taken up by outbound shipments.

Year to date, imports were up 0.6 percent at $95.07 billion from $94.49 billion a year earlier, while exports grew 1.1 percent to $55.67 billion from $55.08 billion.

Electronics remained the country's top export, accounting for $3.15 billion or 50.3 percent of total exports for September.

Manufactured goods and mineral products followed at $506.69 million and $330.23 million, respectively.

The United States was the biggest buyer of Philippine-made goods for the month, having purchased $1.08 billion or 17.3 percent of total exports.

Rounding out the top five were Hong Kong ($867.42 million or 13.9 percent), Japan ($847.47 million or 13.5 percent), China ($830.36 million or 13.3 percent) and Korea ($318.5 million or 5.1 percent).

Electronic products were also the Philippines' biggest import for September at $2.40 billion or 21.2 percent of the total.

Mineral fuels, lubricants and related materials followed at $1.36 billion (12.0 percent), and transport equipment ($1.12 million, 9.9 percent) was third.

China was the country's biggest supplier, providing $2.84 billion worth of goods or 25.0 percent of total inbound shipments.

It was followed by Indonesia ($1.09 billion or 9.6 percent), Japan ($837.75 million or 7.4 percent), Korea ($784.65 million or 6.9 percent) and Thailand ($735.58 million or 6.5 percent).

Commenting on the latest merchandise trade data, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the shortfall reflected a stronger peso.

He added that it "also made exports more expensive from the point of view of international buyers, thereby partly slowing down the demand for Philippine exports."

For the rest of the year, increased demand and other economic activities — especially during the upcoming holiday season — will boost production activities and export sales, Ricafort said.