The Philippines' trade deficit narrowed in December 2025 as export growth exceeded that of imports.

The balance of trade in goods slid 15% to $3.52 billion from $4.15 billion a year earlier, according to Tuesday data from the Philippine Statistics Authority.

Exports soared 23.3% year on year to $6.99 billion, while imports rose 7.1% to $10.5 billion from the prior year.

Electronic products, led by semiconductors, were a major commodity that bolstered exports, earning $4.04 billion or 57.8% of the country's total exports during the month. This commodity group also led in imports, as the value of imported goods amounted to $544.8 million.

International semiconductor firms such as Cirtek Holdings (HKG:1433) and Nasdaq-listed Amkor Technology have hubs in the Philippines.

The U.S. remains the Philippines major trading partner as its export value reached $1.10 billion in December 2025, the PSA said.

Meanwhile, China is the Philippines' biggest supplier of imported goods, valued at $2.98 billion.