The Philippines’ trade deficit in June 2025 narrowed 8.8 percent year-on-year to $3.95 billion as exports surged while imports grew at a slower pace, the Philippine Statistics Authority (PSA) reported on Wednesday.
The comparative year-earlier trade deficit stood at $4.33 billion.
Exports in June 2025 jumped 26.1 percent to $7.02 billion from $5.56 billion a year earlier. Imports rose 10.8 percent to $10.98 billion from $9.9 billion.
Total trade in goods during the month hit $18 billion, up 16.3 percent from a year earlier, reversing the 11.1 percent contraction seen in June 2024.
Electronics still top export
Electronics remained the country’s top export, valued at $3.89 billion, followed by mineral products ($491 million), other manufactured goods ($361 million), machinery and transport equipment ($303 million), and wiring sets used in vehicles, aircraft, and ships ($214 million).
Manufactured goods accounted for nearly 79 percent of total exports.
US top export market
The United States retained its position as the Philippines’ top export market, accounting for $1.21 billion or 17.3 percent of total shipments.
Completing the top five were Hong Kong ($1.07 billion), Japan ($975 million), China ($734 million) and Singapore ($312 million).
On the import side, electronics also topped the list at $2.56 billion, followed by mineral fuels and lubricants ($1.40 billion) and transport equipment ($1.32 billion). Capital goods led all import categories at $3.71 billion (33.8 percent of total), followed by raw materials and intermediate goods at $3.67 billion (33.4 percent), and consumer goods at $2.15 billion (19.6 percent).
China top import source
China remained the country’s top source of imports, shipping $3.1 billion worth of goods to the Philippines, or 28.2 percent of the total.
Other top import partners were Japan ($870 million), South Korea ($853 million), Indonesia ($840 million) and Thailand ($627 million).
6 months deficit
From January to June, the country’s trade deficit reached $23.97 billion, 4.4 percent lower than the $25.06 billion shortfall recorded in the same period last year.
Exports for the first half of 2025 climbed 13.2 percent to $41.24 billion, while imports rose 6 percent to $65.22 billion.
Trade war, Mid-East still pose risk
Rizal Commercial Banking Corp. chief economist Michael Ricafort noted that June’s deficit was the narrowest since October 2021, but warned that global trade headwinds — including the ongoing US trade war — could slow export and import momentum in the coming months.
However, he warned that Trump’s tariff hikes and other trade barriers could raise inflation and unemployment in the US, triggering a broader slowdown in global trade, investment and economic growth.
“As a result, this could drag down the Philippines’ own growth and reduce both exports and imports,” Ricafort said, adding that rising geopolitical risks — particularly Israel-Iran tensions since June — could further weigh on global trade momentum.
