Tech-driven exports expected to boost Asia-Pacific growth

ECONOMIES in the Asia-Pacific (APAC) region could gain some growth support from the boom in technology-driven exports, Fitch Ratings said, though tariffs remain a source of uncertainty.

“Fitch Ratings expects continued growth in AI-related exports in 2026, but the fading of front-loaded orders for other products and unfavorable base effects will likely weaken GDP (gross domestic product) growth rates,” Fitch Ratings Senior Director Kathleen Chen and Director George Xu said in a Jan. 27 report. 

According to Fitch, the Philippines had the third-best export performance in the region last year, behind Taiwan and Vietnam.

In 2025, Philippine exports were valued at $84.41 billion, up 15.2%, according to the Philippine Statistics Authority.

This was a turnaround from the 0.5% decline seen the previous year and exceeded the government’s estimate of a 2% drop.

Electronic products remained the Philippines’ top export. They grew 17.6% to $45.96 billion.

Global demand remains high for semiconductors, driving Philippine exports of such products up 18.7% at $34.62 billion last year.

However, Fitch Ratings warned that US tariffs could dampen the supposed growth boost from electronics exports.

“In addition, potential sectoral tariffs are a major risk, including Section 232 duties on semiconductors that make up a sizeable share of APAC exports to the US,” Ms. Chen and Mr. Xu said.

“The US administration imposed 25% duties on certain advanced AI chips albeit with multiple exemptions in January 2026 and is considering broader tariffs on semiconductors and related products,” they added.

Philippine goods entering the US have been charged a 19% tariff since Aug. 7. The US also recently imposed a 25% tariff on certain semiconductors such as advanced artificial intelligence (AI) chips.

However, analysts have said that the new levy will not directly impact Philippine manufacturers as most of the country’s semiconductor exports are legacy chips covered by the World Trade Organization Information Technology Agreement.

“Although new US tariffs have been imposed on certain advanced AI chips, the impact on the Philippines’ semiconductor exports is expected to be minimal,” Metropolitan Bank and Trust Co.’s Research and Market Strategy Department said in a report.

“We expect semiconductor exports, along with other manufactured and agriculture-based products, to sustain momentum in 2026,” it added. — Katherine K. Chan