Philippines posts $298 million balance of payment deficit in May

MANILA – The Philippines’ overall balance of payments (BoP) position hit a deficit of $298 million in May from a deficit of $2.6 billion in April, the central bank said on Thursday.

“The BOP deficit reflected the national government’s (NG) drawdowns on its foreign currency deposits with the Bangko Sentral ng Pilipinas (BSP) to service external debt obligations,” it said.

Cumulative BoP level for end-May was at $5.8 billion deficit. This was a reversal from a $1.6 billion surplus in January to May 2024.

“Preliminary data indicate that the year-to-date BoP deficit was largely due to the continued trade in goods deficit. This decline was partly muted, however, by the sustained net inflows from personal remittances from overseas Filipinos, foreign borrowings by the NG (National Government), and foreign portfolio investments,” the BSP said.

The central bank has forecast a $2.1 billion BoP surplus for 2025. — Reuters with BusinessWorld