Philippines posts wider BOP deficit in Nov. ’24

The Philippines recorded a balance of payments (BOP) deficit of $2.3 billion in November 2024, a significant increase from the $216 million deficit observed in the same month of the previous year.

In November, the BOP deficit was due to the national government’s withdrawals from its deposits with the BSP to pay off foreign currency debt and expenses, as well as the Bangko Sentral ng Pilipinas (BSP) foreign exchange operations.

Despite the November deficit, the cumulative BOP position for the period from January to November 2024 registered a surplus of $2.1 billion. However, this surplus was lower than the $3.0 billion recorded in the corresponding period of 2023.

Preliminary data shows a decrease in the BOP surplus due to lower trade in services and foreign borrowings by the national government. However, inflows from remittances and foreign investments partially offset this decline.

The BOP position shows a decline in the final gross international reserves (GIR) to $108.5 billion by the end of November 2024, down from $111.1 billion at the end of October 2024.

Attribution: The Bangko Sentral ng Pilipinas report

Subediting: M. S. Salama