The Philippine Exporters Confederation Inc. (Philexport) has expressed strong optimism for 2026, following a remarkable surge in Philippine exports to a record high in 2025. This growth occurred despite facing higher US tariffs and challenging global economic conditions, marking a significant achievement for the nation's trade sector.
A Surprising Export Performance
Philexport president Sergio Ortiz-Luis Jr. described the 2025 performance as "a happy surprise," highlighting that manufactured goods exports grew by an impressive 16 percent. This growth came even after the United States imposed a 19 percent reciprocal tariff on Philippine products in July 2025, a move that many feared would hinder trade.
Record-Breaking Export Figures
Preliminary data from the Philippine Statistics Authority reveals that total exports reached US$84.41 billion in 2025, a 15.2 percent increase from $73.27 billion in 2024. This represents the highest export value ever recorded in the country's history. The momentum accelerated in the final quarter, with overseas shipments growing by more than 20 percent for three consecutive months. In December alone, exports climbed 23.3 percent year on year to $6.99 billion.
Key export products driving this growth included:
- Electronics, which remained the top export category.
- Machinery and transport equipment.
- Wiring harnesses.
- Bananas and coconut products.
Market Dynamics and Trade Agreements
Ortiz-Luis noted that the United States continues to be the Philippines' largest export market, accounting for approximately 15 percent of total export revenue. Electronics make up roughly half of shipments to the US, with agricultural and other goods comprising the remainder. He pointed out that some anticipated tariff measures did not fully materialize, and several key products, such as coconut-based exports, retained zero-tariff status.
The implementation of the Philippines-South Korea free trade agreement and ongoing trade negotiations with Canada and other markets are seen as positive drivers for 2026. "Without new tariff adjustments, I think we are looking at good prospects in 2026," Ortiz-Luis stated.
Impact of Peso Depreciation
The depreciation of the Philippine peso has had mixed effects on the economy. Ortiz-Luis explained that a weaker peso enhances the competitiveness of Philippine exports and benefits overseas Filipino workers, tourism, and domestic producers, particularly in agriculture. However, it also raises costs for fuel and electricity imports and increases the peso value of dollar-denominated debt.
"As long as the decline is not too sudden or too sharp, it can be beneficial to many Filipinos," he remarked, emphasizing the need for a balanced approach.
Calls for Government Support and Reforms
Philexport has renewed its call for stronger government support to sustain export growth. Key recommendations include:
- Higher funding for export promotion initiatives.
- Measures to address high fuel and power costs to improve competitiveness.
- Emphasis on transparency, policy consistency, and political stability to attract investors.
Ortiz-Luis cited reforms under the Anti-Red Tape Authority and positive feedback from locators in the Philippine Economic Zone Authority as encouraging signs for the investment climate. Additionally, export promotion efforts have been bolstered by initiatives to upgrade facilities of the Center for International Trade Expositions and Missions, especially as the Philippines prepares to host regional events under the Association of Southeast Asian Nations.
Looking Ahead to 2026
With record export earnings in 2025 and new trade agreements taking effect, exporters are banking on sustained momentum this year. However, they continue to press for reforms to cushion rising operating costs and ensure long-term growth. The combination of strategic trade partnerships and adaptive economic policies positions the Philippines for a promising export outlook in 2026.
