Export recovery cuts PH trade deficit
The Philippines’ trade deficit narrowed by 11.4 percent in February to $3.16 billion, reversing the increase seen in January, as exports grew while imports declined.
Preliminary data from the Philippine Statistics Authority (PSA) released on Friday showed that total external trade in goods had reached $15.66 billion in February, reflecting a 0.4-percent increase from $15.59 billion in the same month last year.
Imports accounted for 60.1 percent of total external trade, while exports made up the remaining 39.9 percent
The country’s export sales for the month rose by 3.9 percent to $6.25 billion.
Meanwhile, imports totaled $9.41 billion, reflecting a 1.8-percent decline from February last year.
Trade optimism
The recent trade figures provide optimism for a continued recovery of the country’s exports, according to China Bank Capital Corp. managing director Juan Paolo Colet.
“However, this optimism is tempered by uncertainty surrounding US President Donald Trump’s trade policies. Many exporters are anxiously awaiting his upcoming announcement on reciprocal tariffs, as any changes could have significant implications for the Philippine economy,” Colet said in a message sent to the Inquirer.
“Given that the United States remains our top trading partner, we expect any increased tariffs on Philippine goods to negatively impact our exports,” Colet added.
He explained that higher tariffs could make Philippine products less competitive in the American market, potentially slowing down the country’s export growth.
“If the United States exempts the Philippines from tariffs, then that should be positive for our exporters,” he said.
“The focus should be on leveraging our US relationship and mutual interests to get the best possible outcome and, at the same time, stepping up efforts to expand and diversify our export markets,” he said further.
By commodity group, electronic products continued to be the country’s top exports in February with total earnings of $3.52 billion or 56.3 percent of total exports. This was followed by other manufactured goods with an export value of $412.6 million (6.6 percent), and machinery and transport equipment with $254.62 million (4.1 percent).
In January 2025, the trade deficit increased by 17.8 percent compared with the same month in the previous year.
