The Philippines recorded a balance of payments (BOP) surplus of $3.5 billion in September 2024, a sharp reversal from the $414 million deficit during the same period last year, according to data from the Bangko Sentral ng Pilipinas (BSP).
The surplus was driven by inflows from the National Government’s foreign currency deposits and income from the BSP’s overseas investments.
This surplus pushed the year-to-date BOP to $5.1 billion, significantly higher than the $1.7 billion surplus recorded in the same period in 2023.
The improvement was primarily attributed to a narrowing trade deficit and sustained inflows from personal remittances, trade in services, and net foreign borrowings by the government.
Preliminary data from the Philippine Statistics Authority (PSA) showed that the trade deficit for January-August 2024 was $34.3 billion, down from $35.9 billion in the same period last year.
The country also benefited from net foreign direct and portfolio investments, further boosting the BOP surplus.
In addition to the BOP surplus, the Philippines’ gross international reserves (GIR) reached $112.7 billion by the end of September, up from $107.9 billion in August.
This reserve level provides the country with an external liquidity buffer equivalent to 8.1 months’ worth of imports and payments for services and primary income.
It also represents about 4.5 times the country’s short-term external debt based on residual maturity, ensuring the availability of foreign exchange in case of extreme economic conditions.
This increase in GIR, alongside the improving BOP, strengthens the Philippines’ external position, providing a cushion against global uncertainties.
The BSP noted that the country’s solid remittances, investment inflows, and reduced trade deficit contributed to this positive performance in 2024.
