THE Philippines’ trade deficit narrowed sharply in April 2025 to US$3.49 billion, down 26.1 percent from a year earlier, as export growth outpaced a decline in imports, official data from the Philippine Statistics Authority (PSA) showed.
Total external trade reached $16.99 billion, down two percent year-on-year. Exports rose seven percent to $6.75 billion, supported by strong shipments of electronics, manufactured goods and agricultural products. Imports, meanwhile, declined 7.2 percent to $10.24 billion, led by lower values of fuel, ores and steel.
The April deficit marked a reversal from March 2025, when the country posted a 34.5 percent increase in trade shortfall, and it compares with a more modest 2.2 percent decline in April 2024.
Electronics remained the top export item, accounting for 50.5 percent of total outbound shipments at $3.41 billion. Other key contributors included manufactured goods ($843.6 million) and mineral products ($291.6 million). On the import side, electronics also led at $2.31 billion, followed by transport equipment and fuel-related goods.
The United States was the Philippines’ largest export destination in April, receiving $1.03 billion worth of goods, followed by Hong Kong, Japan, China and Canada. China continued to be the country’s top import source, supplying $3.01 billion or 29.4 percent of total imports.
For the first four months of 2025, the trade gap stood at $15.91 billion, as exports rose 9.5 percent year-on-year to $26.87 billion and imports climbed 5.6 percent to $42.78 billion.
Despite global headwinds, the improved trade balance signals a potential easing in external pressures on the Philippine economy, supported by resilient export demand and softening import costs, particularly in fuel and raw materials. / KOC