Current account deficit dips in Q2

The country's current account deficit eased to $5 billion in the second quarter, down by 15.8 percent from $5.9 billion a year ago, as stronger exports helped trim the trade gap, according to the Bangko Sentral ng Pilipinas (BSP).

- By KEISHA TA-ASAN

"This development reflected the narrowing trade in goods deficit, alongside the increases in net receipts in the primary and secondary income accounts," the BSP said. "However, these gains were partly muted by the lower net receipts from trade in services."

The current account records a country's trade in goods and services, income from abroad and secondary transfers such as remittances. A deficit means the Philippines spends more on imports and other external payments than it earns from exports and inflows.

The narrower deficit, equivalent to -4 percent of gross domestic product from -5.2 percent of GDP in the same quarter last year, was supported by resilient shipments of copper anodes, electronics and mineral exports such as nickel and gold.