BOP Shortfall Widens to $5.8 Billion in End-May

The country's balance of payments (BOP) position deteriorated further in the first five months, swinging to a $5.82-billion deficit as of end-May, according to the Bangko Sentral ng Pilipinas (BSP).

- By KEISHA TA-ASAN

This marked a sharp reversal of the $1.6-billion surplus recorded in the same period last year, as the country continued to grapple with a wide trade gap and higher external debt repayments.

In May alone, the BOP recorded a $298-million shortfall, a stark turnaround from the $2-billion surplus posted in the same month last year. This was the smallest deficit in three months or since February.

The BSP attributed the monthly deficit to the national government's drawdowns on its foreign currency deposits with the central bank to service its external debt obligations.