Trade deficit eases in February but remains wider than a year ago

Gap hits $3.68B, down from January but still above last year’s level, PSA data shows.

The Philippines’ trade gap narrowed in February from the previous month, signaling some easing in external pressure, even as it remained higher than a year ago and continues to reflect an import-heavy trade balance.

The trade deficit reached $3.68 billion in February, according to the Philippine Statistics Authority (PSA), up 23.1% from $2.99 billion in the same month last year. However, it was 13.81% lower than January’s $4.27 billion, suggesting a slight month-on-month improvement in trade flows.

This also marked the lowest monthly trade deficit since May last year, when the gap stood at $3.64 billion, indicating that February’s level is closer to mid-2025 conditions despite lingering yearly pressures.

The movement highlights a still uneven trade recovery, where short-term improvements are being tempered by structural gaps between exports and imports. For businesses, this signals continued exposure to import costs even as monthly volatility begins to stabilize.