Trade deficit narrows in April as exports rise, imports decline

The Philippines’ trade deficit significantly narrowed in April 2025 as stronger export performance and reduced imports improved the country’s trade balance, data from the Philippine Statistics Authority (PSA) revealed on Friday.

The trade gap shrank by 26.1 percent, dropping to USD3.49 billion from USD4.72 billion in April last year. This development was driven by a 7 percent increase in exports, which rose to USD6.75 billion from USD6.30 billion in the same month of 2024.

Electronic products remained the country’s top export, earning USD3.41 billion and accounting for more than half (50.5 percent) of total export revenues. The United States was the Philippines’ largest export destination in April, with goods valued at USD1.03 billion. Other major export markets included Hong Kong, Japan, China, and Canada.

On the import side, the value of inbound goods fell by 7.2 percent to USD10.24 billion, down from USD11.03 billion in April 2024. The PSA noted that the sharpest drop was seen in mineral fuels, lubricants, and related materials, which declined by USD586.04 million year-on-year.

China remained the country’s top source of imports, followed by South Korea, Japan, Indonesia, and Thailand.

The improved trade balance in April reflects the continuing adjustment of the country’s external trade dynamics amid global economic shifts, with policymakers hoping to maintain export momentum and manage import costs to support broader economic stability.