Current account deficit narrows in 9 months

The Philippines posted a narrower current account deficit in the January to September period as resilient exports, steady services receipts, and solid inflows from overseas Filipinos helped offset a still-wide trade gap, according to data from the Bangko Sentral ng Pilipinas (BSP).

- By KEISHA TA-ASAN

The current account shortfall eased to $12.5 billion during the nine-month period from $13.3 billion a year earlier, equivalent to 3.6 percent of gross domestic product.

The improvement reflected “strong global demand for manufactured goods, minerals and electronics,” which kept exports resilient even as imports remained elevated due to demand for telecommunications equipment, electrical machinery and passenger vehicles.

Despite this, the country’s overall external position weakened as the balance of payments (BOP) swung to a $5.3-billion deficit during the nine-month period, reversing the $5.1-billion surplus posted a year earlier.