PH trade deficit narrows in Dec. as exports post double-digit growth

The Philippines closed 2025 with a narrower trade deficit as export growth outpaced imports, preliminary government data released Tuesday revealed.

Data from the Philippine Statistics Authority (PSA) showed that the balance of trade in goods (BoT-G) posted a $3.254-billion deficit in December, 15% smaller than the $4.145-billion shortfall a year earlier, and the $3.954-billion deficit a month earlier.

A deficit indicates that the value of a country’s imports exceeded export receipts, while a surplus indicates more export shipments than imports.

Exports for the month stood at $6.992 billion to reflect a 23.3% increase from the $5.672 billion the previous year, and higher than the $6.926 billion the previous month.

The biggest growth was seen in electronic products which climbed by $1.226 billion to $4.042 billion; followed by fresh bananas by $112.23 million to $227.76 million; gold by $74.23 million to $250.88 million; machinery and transport equipment by $64.11 million to $295.57 million; and other mineral products by $50.98 million to $215.79 million.

Among major types of goods, manufactured goods contributed $5.59 billion or 79.9%, while agro-based products came in at $732.09 million or 10.5%, and mineral products at $514.85 million or 7.4%.

The United States of America was the biggest export partner for the month, with $1.10 billion or 15.7%, followed by Hong Kong with $1.05 billion, Japan with $975.84 million, China with $790.15 million, and Singapore with $329.46 million.

Imports for the month were recorded at $10.517 billion, 7.1% higher than the $9.818 billion in December 2024, but lower than the $10.880 billion the previous month.

The highest annual jumps were recorded in electronic products which grew by $544.80 million to $2.658 billion; telecommunication equipment by $91.64 million to $387.31 million; mineral fuels by $86.76 million to $1.455 billion; miscellaneous manufactured articles by $78.07 million to $441.45 million; and transport equipment by $67.89 million to $1.031 billion.

Capital goods made up for the largest share of imports in December with $3.53 billion or 33.6%, while raw materials and intermediate goods came in at $3.40 billion or 32.3%, and consumer goods with $2.08 billion or 19.8%.

China remained the biggest supplier of imported goods with $2.98 billion or 28.4%, followed by South Korea with $1.03 billion, Indonesia with $712.78 million, Japan with $712.14 million, and the USA with $662.11 million.

Total trade for December came in at $17.510 billion, 13.0% higher than the $15.491 billion the same month in 2024, but lower than the $17.807 billion in November. — RSJ, GMA Integrated News