PH trade deficit shrank by 29% in Nov

A sustained growth in export sales, coupled with softer imports, slashed the country’s trade deficit by nearly 30 percent in November, according to the Philippine Statistics Authority (PSA).

The PSA reported that the country’s trade-in-goods deficit, or the difference between exports and imports, narrowed by 28.8 percent to $3.51 billion in November, from $4.93 billion in the same month last year.

Month-on-month, the deficit also contracted by 8.4 percent from October’s $3.83 billion.

Exports jumped 21.3 percent to $6.91 billion from $5.70 billion a year ago, led by electronics shipments totaling $4.19 billion or 60.7 percent of the country’s total exports.

This sustained growth, according to Chinabank Research, may offer some optimism for the Philippine economy in the fourth quarter, following a slowdown in the third quarter.

Hong Kong surpassed the United States as the Philippines’ top export market, accounting for $1.17 billion, or 16.9 percent of total exports.

November’s export sales, however, were $480 million less than the previous month.

The year-on-year surge in exports, alongside a slight month-on-month decline, comes even as concerns over tariffs persist.

“Global demand is stabilizing, but tariff risks and geopolitics remain wild cards,” Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said. “For businesses, the play is clear: double down on export competitiveness, diversify markets and stay agile on supply chain shifts.”

Meanwhile, Chinabank Research cautioned that the export growth may not be sustained heading into the new year.

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“In 2026, however, demand for exports may soften due to some payback from earlier front-loading by US firms,” Chinabank said.

Imports

“On the other hand, recent US tariff exemptions and the prospect of new free trade agreements with other nations could help strengthen the trade outlook,” Chinabank added.

Imports eased anew, declining 2 percent to $10.42 billion from last year’s $10.63 billion, and remaining below October’s $11.22 billion.

Similar to exports, electronics also posted the highest share of imports, reaching $2.87 billion, or 27.6 percent of the total.

China remained the country’s top source of imported goods, accounting for $2.90 billion, or 27.8 percent of total imports.