Current account deficit narrows to $16 billion in 2025

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March 16, 2026 | 12:00am

MANILA, Philippines — The country’s current account deficit narrowed in 2025 as stronger exports, record remittances from overseas Filipinos and resilient services receipts helped cushion the country’s external position despite global economic uncertainties.

Data from the Bangko Sentral ng Pilipinas (BSP) showed the current account gap declined by 12.3 percent to $16.3 billion in 2025, equivalent to 3.3 percent of gross domestic product, from $18.6 billion or four percent of GDP in 2024.

“The current account deficit narrowed, supported by an improved trade in goods balance amid strong export performance and higher income receipts from overseas Filipinos, consistent with record full year cash remittances in 2025,” the BSP said.

The goods trade deficit eased by 3.2 percent to $66.7 billion in 2025 from $68.9 billion in 2024 as export growth outpaced the increase in imports.

Exports of goods rose by 15.2 percent to $63.4 billion, supported largely by higher shipments of electronic products, machinery and transport equipment, gold and other mineral products.

Electronics remained the country’s top export, driven by strong global demand for semiconductor components used in artificial intelligence, automotive electronics and industrial automation.

Imports, meanwhile, increased by five percent to $130.1 billion, driven mainly by higher purchases of telecommunication equipment and electrical machinery, reflecting continued investments in digital infrastructure and productive capacity.

On the other hand, the country’s net services income slipped by 4.5 percent to $13.2 billion in 2025 from $13.9 billion in 2024 as faster growth in services imports offset gains in exports.

Services export revenues remained supported by the business process outsourcing industry, which continued to benefit from strong global demand for digital and outsourcing services.

Meanwhile, net receipts in the secondary income account rose to $32.7 billion from $31.7 billion, driven largely by remittance inflows from overseas Filipinos that increased by 3.3 percent to a record $30.8 billion.

“Remittances continued to anchor household consumption, providing a buffer against external headwinds,” the central bank said.

Despite the narrower current account gap, the country’s overall balance of payments position still posted a $5.7-billion deficit in 2025, reversing the $609-million surplus recorded in 2024, mainly due to softer financial account inflows amid tighter global financial conditions.