The Philippines’ merchandise trade deficit narrowed significantly in November 2025, as export growth outpaced import demand, supporting a more positive external trade outlook heading into year-end.

According to the latest data from the Philippine Statistics Authority (PSA) figures, total outbound shipments rose to about $6.91 billion in November, marking a strong 21.3 percent year-on-year increase, while total merchandise imports declined slightly to roughly $10.42 billion, resulting in a trade deficit of approximately $3.5 billion — a contraction of nearly 28.8 percent from the same month in 2024. 

Export resilience despite headwinds

The narrower deficit reflects continued export resilience despite persistent global headwinds. Exports have now recorded double-digit growth for most of 2025, extending a trend seen in the preceding months. 

From January to November, cumulative exports reached about $77.39 billion, up 14.5 percent from the same period last year, while the overall trade gap for the year-to-date narrowed to roughly $45.2 billion, down nearly 9.3 percent from 2024. 

Electronic products dominate

Electronic products continued to dominate outbound shipments, accounting for a majority share of export value and underscoring the role of semiconductors and high-value tech components in the Philippines’ trade mix. Other manufactured goods and machinery also contributed to the export gains.

On the import side, subdued demand for certain commodity groups helped temper total inbound purchases, despite continued reliance on foreign-sourced intermediate goods and capital equipment. China remained a major source of imports, consistent with long-standing trade patterns.

The moderation in import growth, combined with export expansion, contributes to easing external trade pressures and bolsters prospects for the Philippines’ external sector as the economy approaches the end of 2025. 

Continued export momentum will be a key driver of overall economic performance in the final quarter and into 2026.