THE Philippines’ trade deficit eased in the first half of 2025 as export growth outpaced imports, data from the Philippine Statistics Authority (PSA) showed on Wednesday, Sept. 10. 2025.
The balance of trade in goods stood at US$24.41 billion from January to June, a 2.6 percent annual decline from the $25.06 billion deficit recorded in the same period last year. This came as the country’s external trade surged by 9.2 percent to $106.99 billion, faster than the 1.4 percent increase posted in the second half of 2024.
Exports rose 13.3 percent to $41.29 billion, recovering from a 3.8 percent slump in the previous semester. Electronics remained the country’s top export, contributing $21.69 billion or 52.5 percent of total outbound shipments. Other manufactured goods ($3.93 billion) and mineral products ($1.85 billion) also supported growth. The United States remained the biggest market with $6.6 billion worth of exports, followed by Japan, Hong Kong, China and the Netherlands.
Imports, which made up 61.4 percent of total trade, also climbed but at a slower pace of 6.8 percent, reaching $65.70 billion. Electronic products led the increase, rising by $1.92 billion to $14.6 billion, followed by transport equipment and telecom and electrical machinery. China remained the country’s top source of imports at $18.57 billion, accounting for 28.3 percent of inbound goods.
By region, East Asia dominated both sides of trade, accounting for $18.87 billion in exports and $31.82 billion in imports. Meanwhile, the European Union remained a key partner, with the Netherlands topping export destinations and Germany leading imports.
The narrower trade gap offers a modest relief for the economy, though the Philippines continues to rely heavily on imports of raw materials, capital goods and consumer products to support domestic demand and production. / KOC