The Philippines recorded a significant improvement in its external trade position in November 2025, with the deficit in goods trade contracting sharply due to robust export performance and a slight dip in imports.
Sharp Contraction in Trade Gap
Data released by the Philippine Statistics Authority (PSA) shows the balance of trade in goods posted a deficit of $3.51 billion in November 2025. This represents a substantial 28.8 percent decrease from the deficit recorded in the same month the previous year. This marks the second consecutive month of annual contraction, following a 27.9 percent narrowing in October, and reverses the trend of widening deficits seen in late 2024.
Exports Outpace Imports
The dramatic improvement was driven by a powerful expansion in outbound shipments, which comfortably outpaced a decline in purchases from abroad. The country's total external trade in goods grew by 6.1 percent year-on-year to reach $17.33 billion for the month.
Exports surged by 21.3 percent to $6.91 billion. The growth was spearheaded by electronic products, which contributed an additional $1.41 billion compared to November 2024. Machinery, transport equipment, and gold also posted gains. Electronics solidified its position as the nation's top export, generating $4.19 billion or 60.7 percent of total export earnings. Manufactured goods collectively accounted for over 80% of exports.
In contrast, imports edged down by two percent to $10.42 billion. The decline was attributed to reduced purchases of metalliferous ores, mineral fuels, and cereals. Despite the overall drop, electronic products remained the largest import item, constituting 27.6 percent of the total import bill.
Key Trading Partners and Year-to-Date Performance
Geographic trade patterns showed notable shifts and concentrations in November. Hong Kong emerged as the Philippines' top export destination, followed closely by the United States and Japan. On the import side, China was the biggest source, with South Korea and Japan next in line.
The data underscores the Philippines' deep integration within the Asia-Pacific region. More than 80 percent of exports and over 84.1 percent of imports were traded with fellow member economies of the Asia-Pacific Economic Cooperation (APEC) bloc.
For the cumulative period from January to November 2025, the broader trend remains positive. Exports grew by 14.5 percent to $77.39 billion, while imports saw a more moderate increase of 4.1 percent to $122.59 billion.
The November figures provide a welcome boost to the country's external accounts, suggesting resilience in key manufacturing sectors and potentially easing pressure on the peso. The sustained strength of electronics exports continues to be a critical pillar for the Philippine economy.
