The Philippines recorded a significant improvement in its trade balance during October 2025, with the trade deficit shrinking by more than a third as export performance strengthened while import demand softened, according to the latest data from the statistics agency released on Friday, November 28, 2025.
Sharp Decline in Trade Gap
The country's trade deficit narrowed dramatically by 34.2 percent to US$3.83 billion in October 2025 compared to the same month last year. This represents a remarkable reversal from the 37.1 percent expansion recorded in October 2024 and continues the improving trend that began in September, when the deficit had already eased by 8.5 percent.
Total external trade for the Philippines still managed to grow by 2.3 percent, reaching $18.61 billion during the month. Imports continued to account for the majority of this trade volume at 60.3 percent of the total, though their share decreased as export performance strengthened.
Export Sector Shows Strong Recovery
The Philippine export sector demonstrated impressive resilience, jumping 19.4 percent to $7.39 billion in October. This represents a substantial rebound from the five percent contraction experienced during the same period a year earlier.
The electronics industry drove this export surge, contributing an additional $1.29 billion in revenue. Other significant contributors included machinery and transport equipment, which increased by $215.9 million, and gold exports, which rose by $88.6 million.
From January to October 2025, exports climbed 13.8 percent to $70.43 billion, indicating sustained growth throughout the year.
Electronics remained the country's dominant export product, generating $4.18 billion or 56.6 percent of October's total shipments. Manufactured goods constituted the bulk of total exports at $6.02 billion (81.5 percent), followed by agro-based products and mineral output.
Import Trends and Trading Partners
Meanwhile, imports fell 6.5 percent to $11.22 billion in October, marking a reversal after rising in the previous two months. The most significant declines occurred in transport equipment (down $344.7 million), mineral fuels (down $330.6 million), and cereals (down $248.8 million).
Despite the October decline, year-to-date imports still grew by 4.3 percent to $111.75 billion, reflecting the overall strength of domestic demand throughout most of the year.
Electronics also topped the import categories at $2.97 billion (26.5 percent), followed by mineral fuels and transport equipment. Raw materials and intermediate goods comprised the largest share among import categories at $4.18 billion (37.3 percent).
The United States emerged as the top export market for Philippine goods with $1.16 billion (15.7 percent share), ahead of Japan, Hong Kong, China, and Germany. APEC economies absorbed 82 percent of total exports, with East Asia accounting for the largest regional share.
China remained the Philippines' biggest source of imports at $3.41 billion, equal to 30.4 percent of the total. Japan, Indonesia, South Korea, and Thailand followed as other major import sources. APEC and RCEP trading partners accounted for most inbound shipments, with East Asia contributing more than half.
The October trade figures reflect strengthening export demand and softer import requirements, helping ease the country's trade imbalance as it approaches the year-end period and positioning the economy for more balanced external trade in the coming months.
