BoP position swings to deficit in July

THE PHILIPPINES’ balance of payments (BoP) position swung to a $167-million deficit in July as the government paid off external debt, the central bank said on Tuesday.

- Katherine K. Chan

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed the BoP position stood at a $167-million deficit in July, a reversal from the $226-million surplus recorded in June and the $62-million surplus in July 2024.

“The BoP deficit reflected National Government's (NG) draw-downs on its foreign currency deposits with the BSP to service external debt obligations,” the BSP said in a statement.

For the first seven months, the BoP deficit widened to $5.756 billion, marking a reversal from the $1.504-billion surplus in the January-July period last year.

BoP refers to the country’s economic transactions with other nations. A surplus indicates more funds entered the country, while a deficit shows that the country spent more than it received.

“Preliminary data indicate that the year-to-date BoP deficit, was largely due to the continued trade in goods deficit,” the central bank said.

The Philippines’ balance of trade in goods, or the difference between the values of exports and imports, posted a $3.95-billion deficit in June, based on data from the Philippine Statistics Authority.