FX.co ★ Philippines Trade Deficit Narrows in July

In July 2025, the Philippines experienced a reduction in its trade deficit, which decreased to USD 4.05 billion from USD 4.88 billion in the same period the previous year. Export performance was robust, witnessing a 17.3% increase year-on-year, reaching USD 7.34 billion. This growth was largely driven by significant sales in electronic products (20.7% increase), other mineral products (133.1% increase), machinery and transport equipment (29.3% increase), and gold (100.3% increase). The United States emerged as the principal export destination, claiming 15.8% of exports, despite implementing a 19% tariff on Philippine goods from late July. Other key markets included Hong Kong (15.2%), Japan (13.6%), and China (11.3%). On the import front, there was a 2.3% rise to USD 11.38 billion, with notable increases in electronic products (10.2%), miscellaneous manufactured articles (19.3%), and telecommunication equipment (24.1%). China continued to be the dominant source of imports, accounting for 29.9% of the total, followed by South Korea (8.9%), Indonesia (7.9%), and Japan (7.4%). For the first seven months of the year, the trade gap contracted to USD 28.46 billion from USD 29.93 billion in 2024.