Philippines posts $724m BOP deficit in Oct.

The Philippines’ balance of payments (BOP) position recorded a deficit of $724 million in October 2024, a significant reversal from the $1.5 billion surplus reported in the same month of the previous year.

The October 2024 deficit primarily resulted from the National Government’s net foreign currency withdrawals from its deposits with the Bangko Sentral ng Pilipinas (BSP) to fulfil foreign currency debt obligations and finance various expenditures.

Despite the deficit, the cumulative BOP position from January to October 2024 remained positive, registering a surplus of $4.4 billion. This represents a notable increase compared to the $3.2 billion surplus recorded during the same period in 2023.

The surplus was driven by factors such as net inflows from personal remittances, trade in services, and net foreign borrowings by the government. Additionally, net foreign direct and portfolio investments contributed to the positive BOP position.

As of the end of October 2024, the country’s gross international reserves (GIR) level decreased to $111.1 billion from $112.7 billion at the end of September 2024.

However, this level remains more than adequate, covering 8.0 months’ worth of imports of goods and payment of services and primary income. Furthermore, the GIR level is approximately 4.4 times the country’s short-term external debt.

Attribution: Bangko Sentral ng Pilipinas report

Subediting: M. S. Salama