BOP deficit narrows to $155 M in June

The Philippines recorded a balance of payments (BOP) deficit of $155 million in June, nearly 75 percent lower than the $606 million shortfall recorded in the same month last year, according to the Bangko Sentral ng Pilipinas (BSP).

- KEISHA TA-ASAN

However, last month’s deficit was a reversal of the $2 billion surplus recorded in May.

“The BOP deficit in June 2024 reflected outflows arising mainly from the national government’s payments of its foreign currency debt obligations,” the central bank said.

The BOP is the difference in total values between payments into and out of the country over a certain period.

A deficit means that more dollars flowed out to pay for the importation of more goods, services and capital than what came in from exports, remittances from overseas Filipino workers, business process outsourcing earnings and tourism receipts.