FX.co ★ Philippines Trade Gap Widens in March

In March 2025, the Philippines experienced an increase in its trade deficit, reaching USD 4.1 billion compared to USD 3.4 billion in March of the previous year. This growth was due to a more substantial rise in imports than exports. Specifically, imports surged by 11.9% year-on-year to USD 10.7 billion, primarily driven by increased procurement of industrial machinery and equipment (up 32.9%), iron and steel (up 30.1%), and various food and live animals (up 28.4%). China continued to be the leading source of imports, contributing 28.9% of the total, followed by Indonesia at 8.3%, Japan at 7.8%, South Korea at 6.8%, and Thailand at 5.0%. On the other hand, exports witnessed a modest growth of 5.9%, totaling USD 6.6 billion, with significant contributions from coconut oil (up 85.5%), other manufactured goods (up 45.4%), and other mineral products (up 24.6%). The United States was the primary export market, accounting for 16.8% of exports, followed by Hong Kong (15.3%), Japan (14.6%), China (11.6%), and Singapore (4.2%). Over the January to March period, the trade deficit further widened to USD 12.7 billion, compared to USD 11.3 billion for the same period the previous year.