THE Philippine Exporters Confederation Inc. (Philexport) expressed optimism for 2026 after Philippine exports surged to a record high in 2025, defying higher US tariffs and global headwinds.
Philexport president Sergio Ortiz-Luis Jr. described last year’s performance as “a happy surprise,” noting that manufactured goods exports grew 16 percent despite the United States imposing a 19 percent reciprocal tariff on Philippine products in July 2025.
Preliminary data from the Philippine Statistics Authority showed total exports reached US$84.41 billion in 2025, up 15.2 percent from $73.27 billion in 2024 — the highest on record. Overseas shipments grew by more than 20 percent for three consecutive months in the final quarter, with December exports climbing 23.3 percent year on year to $6.99 billion.
Electronics remained the country’s top export, followed by machinery and transport equipment, wiring harnesses, bananas and coconut products.
Ortiz-Luis said the US remains the Philippines’ largest export market, accounting for about 15 percent of total export revenue. Electronics comprise roughly half of shipments to the US, with agricultural and other goods making up the balance. He noted that some feared tariff measures did not fully materialize, while several key products such as coconut-based exports retained zero-tariff status.
The export leader also cited the implementation of the Philippines-South Korea free trade agreement and ongoing trade negotiations with Canada and other markets as positive drivers for 2026.
“Without new tariff adjustments, I think we are looking at good prospects in 2026,” he said.
Peso depreciation, meanwhile, has provided mixed effects. Ortiz-Luis said a weaker peso makes Philippine exports more competitive and benefits overseas Filipino workers, tourism and domestic producers, particularly in agriculture. However, it also raises fuel and electricity import costs and increases the peso value of dollar-denominated debt.
“As long as the decline is not too sudden or too sharp, it can be beneficial to many Filipinos,” he said.
Philexport renewed its call for stronger government support, including higher funding for export promotion and measures to address high fuel and power costs to improve competitiveness. Ortiz-Luis also emphasized the importance of transparency, policy consistency and political stability in attracting investors.
He cited reforms under the Anti-Red Tape Authority and feedback from locators in the Philippine Economic Zone Authority as positive signals for the investment climate.
Ortiz-Luis said export promotion efforts have been bolstered by initiatives to upgrade facilities of the Center for International Trade Expositions and Missions, particularly as the Philippines prepares to host regional events under the Association of Southeast Asian Nations.
With record export earnings in 2025 and new trade agreements taking effect, exporters are banking on sustained momentum this year, even as they press for reforms to cushion rising operating costs. / PHILEXPORT NEWS AND FEATURES