Philippine merchandise exports reached a peak value of $84. 41 billion in 2025, marking a 15 percent increase from the previous year, while the country’s trade deficit narrowed to nearly $50 billion, the smallest gap in four years. All these, despite ongoing global and domestic economic challenges.

This performance underscores the resilience of the country’s export sector, particularly involving industries operating within economic zones

Electronics still top exports

Electronics remained the country’s leading export, accounting for a significant share of investments approved by the Philippine Economic Zone Authority (PEZA) and retaining its position as the Philippines’ top export commodity.

Other major contributors included machinery and transport equipment, wiring harnesses, bananas, and coconut products, many of which are produced within PEZA-registered ecozones.

Exports from economic zones rose by 10 percent in 2025. Historically, PEZA-registered ecozones have accounted for about 50 to 60 percent of the country’s annual merchandise exports, highlighting their critical role in sustaining trade performance.

Investment approvals expected to grow 15 percent

Looking ahead, PEZA expects investment approvals to grow by 15 percent in 2026, supported by new and expansion projects within ecozones.

This outlook has reinforced expectations that Philippine exports will continue to expand, alongside contributions from other investment promotion agencies and local manufacturers.

Korea and UAE FTAs

Trade growth is further supported by government initiatives to expand market access, including newly signed free trade agreements with Korea and the United Arab Emirates (UAE), which are expected to boost both technology-driven and agricultural exports.

Beyond merchandise trade, services exports also contributed significantly to overall growth. The IT-business process management sector recorded $40 billion in services exports in 2025, reinforcing the role of services in the country’s export performance.

Economic managers remain optimistic that export growth will be sustained, supported by ongoing economic reforms, stable macroeconomic conditions, fiscal incentives, shifting global supply chains, and expanded trade agreements.