August 30, 2025 | 12:00am
MANILA, Philippines — The nation’s commerce deficit narrowed in July as exporters frontloaded shipments to beat america’ reciprocal tariffs, which took impact on Aug. 7.
Preliminary knowledge from the Philippine Statistics Authority (PSA) yesterday confirmed that the stability of commerce in items or the distinction between exports and imports in July amounted to a $4.05 billion deficit, down by 17 p.c from the $4.88 billion hole in the identical month final 12 months.
The July commerce shortfall was additionally smaller than the $4.4-billion commerce hole booked in June.
Moody’s Analytics economist Sarah Tan stated the commerce stability improved in July as exports progress outpaced imports.
PSA knowledge confirmed the nation’s merchandise exports in July rose by 17 p.c to $7.34 billion from $6.25 billion in the identical month final 12 months.
Electronics continued to publish the best export gross sales in July, with earnings rising by 21 p.c to $3.92 billion from $3.25 billion in the identical month in 2024.
The US remained the Philippines’ prime export vacation spot, accounting for $1.16 billion or 16 p.c of the overall.
The US imposed a 19-percent reciprocal tariff on Philippine items beginning Aug. 7.
However, the nation’s imports inched up by two p.c to $11.38 billion in July from $11.13 billion in the identical month a 12 months in the past.
Digital merchandise had the largest imports worth in July amounting to $2.8 billion, 10 p.c greater than the $2.54 billion within the earlier 12 months.
China was the largest supply of imported items, valued at $3.4 billion or 30 p.c of the overall in July.
For the January to July interval, the Philippines posted a smaller commerce shortfall of $28.46 billion in comparison with the $29.93 billion commerce deficit in the identical interval in 2024.
Exports elevated by 14 p.c to $48.62 billion from $42.69 billion in the identical interval final 12 months.
“Whereas the export rebound highlights the power of the nation’s export sector, it additionally displays some frontloading of shipments forward of tariff modifications, elevating issues about whether or not the upturn can final within the months forward,” Tan stated.
Likewise, imports grew by six p.c to $77.09 billion from $72.63 billion in the identical interval final 12 months.
Tan stated the problem for the Philippines now’s to show the non permanent enhance in exports right into a extra sustainable export technique.
“Diversifying each merchandise and markets can be essential, whether or not by pushing into new industries, strengthening ties with regional companions, or transferring up the worth chain in electronics manufacturing. With out such shifts, the Philippines dangers seeing its positive aspects eroded as world commerce situations develop extra unsure,” she stated.
