BOP deficit may widen sharply to $6.3B in Q2

After swinging to a $3-billion deficit in the first quarter, the Philippines’ balance of payments (BOP) is projected to more than double at $6.3 in the second quarter of the year, marking its widest shortfall in more than four years since the $9.14 billion posted in the last quarter of 2020, the peak of the pandemic.

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According to the Bangko Sentral ng Pilipinas (BSP), this wider deficit is equivalent to 1.3 percent of the country’s gross domestic product (GDP), reversing the $1.20 billion surplus in the same quarter in 2024. It would also be wider than the 0.8-percent deficit in the first quarter.

“This outlook reflects a continued current account shortfall and moderating financial flows,” the BSP said in a statement released on Monday, June 30. Last quarter, the $3-billion deficit was driven by a wider account deficit, which doubled to $4.2 billion from $2.1 billion in 2024.

“While the domestic economy benefits from steady growth, low inflation, and ongoing structural reforms, these are offset by global trade uncertainty, heightened geopolitical risks, and weakened investor confidence,” the BSP stressed.