Trade gap narrows as exports soar 26 percent in June

The Philippines’ trade deficit shrank by 8.8% in June 2025 as exports surged with double-digit growth, according to preliminary data from the Philippine Statistics Authority (PSA) released last week.

The country posted a USD3.95 billion trade deficit, down from USD4.33 billion in June last year. This improvement came as export sales jumped by 26.1% to USD7.02 billion, up from USD5.57 billion year-on-year.

Driving the export boom were electronic products, which remained the country’s top export item with USD3.89 billion in earnings—accounting for a dominant 55.4% of total outbound shipments. Other key contributors included mineral products and manufactured goods.

The United States remained the Philippines’ top export destination, with shipments reaching USD1.21 billion. Other major trading partners included Hong Kong, Japan, China, and Singapore.

On the import side, the total value of inbound goods rose by 10.8% to USD10.97 billion from USD9.90 billion a year earlier. Electronic products again topped the list at USD2.56 billion, followed by mineral fuels and lubricants (USD1.40 billion) and transport equipment (USD1.32 billion).

China continued to be the country’s biggest source of imports, supplying USD3.10 billion worth of goods—or 28.2% of total imports. Other top import partners were Japan, South Korea, Indonesia, and Thailand.

With exports gaining momentum and the trade gap narrowing, economic planners are optimistic that the country’s external trade will continue to support broader recovery and growth efforts in the second half of the year.