Philippines Trade Deficit Narrows in January

The Philippines’ trade deficit narrowed to USD 4.0 billion in January 2026 from USD 4.9 billion a year earlier, as exports rose while imports declined. Exports increased 7.9% year-on-year to USD 7.1 billion, led by higher shipments of electronic products (+18.8%), which remained the country’s top export commodity, accounting for 56.5% of total exports. Outbound shipments also rose for gold (+263%) and machinery and transport equipment (+68.4%). The US accounted for the largest share of exports (16.4%), followed by Hong Kong (15.9%), Japan (12.3%), and China (9.8%). Meanwhile, imports fell 3.1% to USD 11.1 billion, weighed down by lower purchases of mineral fuels, lubricants, and related materials (-25%), transport equipment (-3.3%), and industrial machinery and equipment (-12.2%). China remained the largest source of imported goods (29.2%), followed by South Korea (11.2%), Japan (8.3%), and Indonesia (7.1%).

The Philippines' trade deficit narrowed to USD 3.52 billion in December 2025 from USD 4.15 billion in the same month last year. This was the smallest trade gap since February, as exports rose much faster than imports. Exports surged by 23.3 year-on-year to USD 6.99 billion, led by higher sales of electronic products (43.6%), which remained the country’s top export commodity, accounting for 57.8% of total exports. The US had the largest export share (15.7%), despite a 19% tariff imposed in August. Other major destinations were Hong Kong (15.1%), Japan (14%), and China (11.3%). Meanwhile, imports increased by 7.1% to USD 10.52 billion, largely due to purchases of electronic products (25.8%) and mineral fuels, lubricants, and related materials (6.3%). China remained the largest supplier of imported goods (28.4%), followed by South Korea (9.8%), Indonesia (6.8%), and Japan (6.8%). In 2025, the country’s trade deficit narrowed to USD 49.17 billion from USD 54.33 billion in 2024.

The Philippines' trade deficit narrowed to USD 3.51 billion in November 2025, from USD 4.94 billion in the same month the previous year, marking the smallest trade gap since February. Exports soared by 21.3% year-on-year to USD 6.91 billion, mainly driven by higher sales of electronic products (50.6%), which remained the top exports with total earnings of USD 4.19 billion, accounting for 60.7% of the country’s total exports. Hong Kong held the largest export share (16.9%), followed closely by the US (16.8%) and Japan (12.6%). Meanwhile, imports fell by 2% year-on-year to USD 10.42 billion, weighed down by lower purchases of mineral fuels, lubricants, and related materials (-18.9%). China remained the top import source (27.8%), followed by South Korea (9.4%) and Japan (7.7%). From January to November, the country's trade gap narrowed USD 45.2 billion, from USD 50.2 billion in the corresponding period a year earlier.