PH Balance of Payments Returns to Surplus in July

The Philippines’ balance of payments (BOP) position returned to a surplus in July 2024, recording a $62-million surplus, a significant improvement from the $155-million deficit in June. This reversal was primarily driven by inflows from the overseas investments of the Bangko Sentral ng Pilipinas (BSP) and net foreign currency deposits by the national government.

Year-to-date, the BOP surplus stands at $1.504 billion, slightly lower than the $2.207 billion surplus during the same period last year. The BSP attributed this cumulative surplus to the narrowing trade deficit, continued inflows from remittances, foreign direct investments (FDIs), and net foreign borrowings.

The latest data also shows that the trade deficit in goods was $4.303 billion in June, and remittances grew by 2.5% year-on-year. The gross international reserves (GIR) were sufficient to cover 7.9 months of imports, further supporting the country’s external position.

Looking ahead, economists expect the BOP position to improve further, driven by continued growth in structural inflows as the Philippine economy continues its recovery.