First Quarter 2023 Developments
The country’s balance of payments (BOP) position registered a surplus of US$3.5 billion in Q1 2023, higher than the US$495 million surplus recorded in Q1 2022. The BOP surplus increased due to higher net inflows (or net borrowing by residents from the rest of the world) in the financial account amounting to US$5.7 billion in Q1 2023 from the US$4.7 billion net inflows in Q1 2022.
Current Account. The current account registered a deficit of US$4.3 billion (equivalent to -4.3 percent of the country’s GDP) in Q1 2023, from the US$4.0 billion deficit (equivalent to -4.2 percent of the country’s GDP) in Q1 2022. This was due mainly to the widening trade in goods deficit and lower net receipts in the primary income account. This was partly muted by the increase in net receipts in the trade in services account.
Capital Account. The capital account recorded net receipts amounting to US$21 million in Q1 2023, a reversal from the US$19 million net payments recorded in the same quarter in the previous year. This was due mainly to the decline in gross acquisitions of non-produced non-financial assets (e.g., patents, trademarks, and copyrights) to US$2 million in the first quarter of 2023 from the US$42 million comparable figure recorded in Q1 2022.
Financial Account. The financial account recorded net inflows (or net borrowing by residents from the rest of the world) amounting to US$5.7 billion in Q1 2023 from net inflows of US$4.7 billion in the same period a year ago. This was largely on account of the increase in net inflows in the other investment account coupled with the reversal of the portfolio investment account to net inflows. However, this was slightly tempered by the decline in net inflows recorded in the direct investment account.
Gross International Reserves
The country’s gross international reserves (GIR) settled at US$101.5 billion as of end-March 2023, lower than the US$107.3 billion level registered as of end-March 2022.
Exchange Rate
The peso appreciated against the U.S. dollar by 4.6 percent to average P54.86/US$1 in Q1 2023 from an average of P57.39/US$1 in Q4 2022. Meanwhile, the peso depreciated year-on-year by 6.1 percent from an average of P51.53/US$1 in Q1 2022.
