FX.co ★ Philippines Trade Gap Narrows in April

In April 2025, the Philippines experienced a reduction in its trade deficit, decreasing to USD 3.5 billion from USD 4.7 billion in the same period the previous year. This improvement was attributed to a rise in exports alongside a decline in imports. Specifically, exports increased by 7% year-on-year, reaching USD 6.7 billion. This growth was largely propelled by substantial increases in sales of other manufactured goods (143.8%), metal components (26.9%), and bananas (25.4%). The United States emerged as the largest destination for these exports, accounting for 15.9% of the total, followed by Japan and Hong Kong, each with 13.2%, and China with 10.4%.

Conversely, imports saw a decrease of 7.2%, totaling USD 10.2 billion. This decline was mainly due to a reduction in the acquisition of mineral fuels, lubricants and related materials, which fell by 35.1%, iron and steel, down by 25.3%, and cereals and cereal preparations, declining by 17.8%. China maintained its position as the primary source of imports, contributing to 28.2% of the total, followed by Japan (8.3%), Indonesia (8%), and South Korea (7.4%).

Over the first four months of the year, the trade deficit saw a slight contraction, settling at USD 15.9 billion compared to USD 16 billion during the same period of the previous year.