Current account deficit widens to $5.1 B in Q2

The country's current account deficit widened by 25 percent to $5.1 billion in the second quarter from $4.1 billion in the same period a year ago, due largely to the higher trade in goods gap, according to the Bangko Sentral ng Pilipinas.

- KEISHA TA-ASAN

BSP senior director Redentor Paolo Alegre Jr. said the shortfall was equivalent to -4.6 percent of gross domestic product in the second quarter from 3.9 percent of GDP in the same quarter in 2023.

"This development was driven by the expansion in the trade in goods gap and lower net receipts in trade in services. This was partly muted by higher net receipts in the primary and secondary income accounts," Alegre said.

The country's trade in goods deficit widened by 4.2 percent to $16.8 billion in the second quarter from $16.1 billion last year as exports declined while imports climbed.

Exports went down by 0.8 percent to $13.8 billion in the second quarter from $14 billion a year ago, while imports grew by 1.9 percent to $30.7 billion from $30.1 billion previously.