BOP deficit shrinks to five-month low

A larger balance of payments (BOP) surplus in August narrowed the country’s cumulative deficit for the first eight months of the year to its lowest level in five months, according to the Bangko Sentral ng Pilipinas (BSP).

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The latest data from the BSP showed that the BOP, which reflects the country's transactions with the rest of the world, registered a $359-million surplus in August, up from the $88 million recorded in the same month last year and reversing the $167-million deficit in July.

In a statement on Friday night, Sept. 19, the BSP attributed the bigger August surplus to its net income from investments overseas.

“This surplus helped narrow the year-to-date deficit, reducing it from $5.8 billion in January to July 2025 to $5.4 billion in January to August 2025,” the BSP said.

The year-to-date BOP deficit at end-August was the narrowest since the end-March deficit of nearly $3 billion, BSP data showed.

However, the end-August deficit reversed the $1.6-billion BOP surplus in the first eight months of 2024.

Preliminary BSP data showed that the year-to-date BOP deficit was primarily driven by the sustained trade-in-goods shortfall, or merchandise imports exceeding exports.