Trade gap narrows to $49.17 billion in 2025

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January 28, 2026 | 12:00am

MANILA, Philippines — The country closed 2025 with its narrowest trade gap since 2021 as exports grew faster than imports.

Preliminary data from the Philippine Statistics Authority (PSA) yesterday showed that the balance of trade in goods – the difference between exports and imports – amounted to a $49.17-billion deficit last year, 9.5 percent lower than the $54.33 billion shortfall in 2024.

National Statistician Dennis Mapa said in a Viber message that the trade deficit for 2025 “is the lowest deficit since 2021 with $42.19 billion.”

Total merchandise exports rose by 15.2 percent to $84.41 billion last year from $73.27 billion in 2024.

“The total value of exports in 2025 was the highest recorded since the series began in 1991,” the PSA said.

Total imported goods increased by 4.7 percent to $133.57 billion last year from $127.60 billion in 2024.

Last year’s total import value was the highest level seen since 2022, when imports amounted to $137.22 billion.

In December 2025, the country posted a trade deficit of $3.52 billion, down by 15 percent from the $4.15 billion shortfall in the same month in 2024.

The December 2025 trade gap is the narrowest in 10 months or since the $2.97 billion trade shortfall in February 2025.

Philippine merchandise exports were valued at $6.99 billion in December last year, 23.3 percent higher than the $5.67 billion export sales in the same month in 2024.

The December 2025 exports value was also slightly higher than the $6.93 billion posted in the previous month.

Electronic products remained the country’s top export commodity group in December last year, with sales reaching $4.04 billion or 57.8 percent of the total exports during the period.

In terms of trading partner, the US accounted for the highest export value, amounting to $1.10 billion or 15.7 percent of the country’s total merchandise exports in December 2025.

The country’s imported goods grew by seven percent to $10.52 billion in December 2025 from $9.82 billion in the same month in 2024.

However, the December 2025 imports value was 3.3 percent lower than the $10.88 billion value in November 2025.

Electronic products had the highest import value in December 2025 at $2.66 billion or 25.3 percent of the country’s total imports.

In terms of import source, China was the largest supplier of Philippine imports, valued at $2.98 billion or 28.4 percent of the country’s total imports in December 2025.

Pantheon Macroeconomics chief emerging Asia economist Miguel Chanco said that while the country’s trade deficit narrowed in December, the month-on-month decline in imports is a concern.

“Underlying this narrowing trend remains a worrying slump in imports, which speaks volumes about the sluggishness of the country’s domestic-demand driven economy,” he said.

While exports continued to grow, he said risks remain tilted to the downside in the short run, citing declining export orders in the manufacturing sector since October.