BOP position in Q4 2022 posts lower surplus; reverses to deficit in the full year of 2022


The country’s balance of payments (BOP) position registered a surplus of US$568 million in Q4 2022, although lower than the US$2.0 billion surplus recorded in Q4 2021.

The BOP surplus declined due to lower net inflows (or net borrowing by residents from the rest of the world) in the financial account amounting to US$1.6 billion in Q4 2022 vis-à-vis the US$5.7 billion net inflows in Q4 2021. This was largely on account of the other investment account’s reversal to net outflows coupled with the decline in net inflows of direct investments.

Meanwhile, the current account reversed to a surplus of US$561 million (equivalent to 0.5 percent of the country’s GDP) in Q4 2022 from the US$3.7 billion deficit (equivalent to -3.3 percent of the country’s GDP) in Q4 2021.

This was due mainly from the narrowing of the deficit in the trade in goods account, combined with the increase in net receipts in the trade in services, primary income, and the secondary income accounts.


The full year BOP position recorded a deficit of US$7.3 billion in 2022, a reversal from the US$1.3 billion surplus in the previous year. This outcome was primarily due to a wider current account deficit of US$17.8 billion (equivalent to -4.4 percent of GDP) compared to the US$5.9 billion deficit (equivalent to -1.5 percent of GDP) recorded in the same period last year, which in turn was the result of a higher trade in goods deficit.

Meanwhile, the financial account posted higher net inflows of US$12.6 billion in 2022 from the US$6.4 billion net inflows recorded in the previous year. This was mainly due to the reversal of the portfolio investment account to net inflows. The increase in inflows, however, was muted by the drop in net inflows of direct and other investments.


The country’s gross international reserves (GIR) settled at US$96.1 billion as of end-December 2022, lower than the US$108.8 billion level registered as of end-December 2021.


In Q4 2022, the peso averaged at P57.39/US$1, depreciating by 1.8 percent relative to an average of P56.36/US$1 in Q3 2022. Likewise, the peso depreciated by 12.1 percent year-on-year from an average of P50.45/US$1 in Q4 2021.

For full year 2022, the peso averaged at P54.48/US$1, depreciating against the U.S. dollar by 9.6 percent from an average of P49.25/US$1 in 2021.