Philippines Records $1.97-B Deficit in March 2025 Balance of Payments

The Philippines’ balance of payments (BOP) position swung to a $1.966-billion deficit in March 2025, reversing the $3.086-billion surplus posted in February, according to data released by the Bangko Sentral ng Pilipinas (BSP) on Monday.

This shift was also a stark contrast to the $1.173-billion surplus recorded in March 2024.

The BOP measures all economic transactions between the Philippines and the rest of the world over a specific period. A surplus indicates net inflows of funds, while a deficit shows more funds leaving the country.

According to the BSP, the March deficit stemmed from the national government’s drawdowns on its foreign currency deposits with the central bank to service external debt obligations, along with BSP’s foreign exchange operations.

As a result, the country’s year-to-date BOP position for the first quarter of 2025 now reflects a $2.958-billion deficit, compared to a $238-million surplus during the same period last year.

The central bank noted that the widening trade deficit contributed largely to the decline. However, this was partly offset by inflows from remittances, foreign direct investments, and government borrowings.

Final data also showed the gross international reserves (GIR) dropped to $106.7 billion in March from $107.4 billion in February. Despite the decline, the BSP said the GIR remains a strong buffer—equivalent to 7.4 months of imports and 3.6 times the country’s short-term external debt.