FX.co ★ Philippines Trade Deficit Narrows in August

In August 2025, the Philippines saw its trade deficit decrease to USD 3.54 billion, down from USD 4.40 billion the previous year. Export activities experienced a 4.6% increase year-over-year, reaching USD 7.06 billion. This growth was primarily driven by significant rises in the sales of electronic products (8.5%), other mineral products (41.2%), machinery and transport equipment (40.5%), and gold (153.4%). Hong Kong emerged as the leading export destination, holding 16.9% of the market, followed by the United States at 15.4%, Japan at 13.9%, and China at 12%. Conversely, imports declined by 4.9%, amounting to USD 10.60 billion, mainly due to reduced imports of mineral fuels, lubricants and related materials (-34.2%), transport equipment (-6.2%), and cereals and cereal preparations (-19.4%). China continued to be the dominant supplier, providing 30.1% of all imports, trailed by South Korea at 8%, Indonesia at 7.9%, and Japan at 6.9%. For the period from January to August, the trade deficit lessened to USD 32.38 billion, a decline from the USD 34.33 billion reported in 2024.