Economy2 MIN READ
Trade Update: Narrower deficit but not stronger
Despite a narrower trade deficit, exports and imports growth both decelerated in July
August 29, 2025 by Metrobank
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The Philippine trade deficit narrowed by 7.7% year-on-year to USD 4.05 billion in July, as export growth continues to outpace import growth.
Key points
- Year-to-date, the country’s total deficit decreased by 4.9% to USD 28.46 billion.
- Exports increased by 17.3% year-on-year, while imports grew by 2.3% year-on-year.
- Manufactured goods were the Philippines’ top export commodity, while raw materials and Intermediate goods were the top import commodity.
Metrobank’s Take
- Weak global demand will continue to weigh down on exports going forward.
- Declining imports of capital goods indicates a weaker outlook for investments and productivity in the country.
- The Philippine trade deficit will likely persist on rising import prices and weak demand.
(Disclaimer: This is general investment information only and does not constitute an offer or guarantee, with all investment decisions made at your own risk. The bank takes no responsibility for any potential losses.)
ECONOMIC UPDATES
Philippines Trade Update: Trade deficit narrows but not a sign of strength
Weak global demand puts a drag on export
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