PH posts lower BOP surplus in Q1, revises projections | ABS-CBN
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PH posts lower BOP surplus in Q1, revises projections
MANILA -- The Philippines’ balance of payments (BOP) posted a surplus of $238 million in the first quarter of 2024, lower than the $3.7 billion surplus in the same quarter last year.
MANILA -- The Philippines’ balance of payments (BOP) posted a surplus of $238 million in the first quarter of 2024, lower than the $3.7 billion surplus in the same quarter last year.
The Bangko Sentral ng Pilipinas said the first quarter surplus was due to the net inflows in the financial account slightly mitigated by outflows in the current account.
The Bangko Sentral ng Pilipinas said the first quarter surplus was due to the net inflows in the financial account slightly mitigated by outflows in the current account.
Current account deficit declined on the back of higher exports in electronic products, copper concentrates and coconut oil while imports cooled particularly for telecommunication equipment and electrical machinery, coal and coke, passenger cars and motorized cycle, and petroleum crude.
Current account deficit declined on the back of higher exports in electronic products, copper concentrates and coconut oil while imports cooled particularly for telecommunication equipment and electrical machinery, coal and coke, passenger cars and motorized cycle, and petroleum crude.
“The main driving factor, if you look at the reduction of value of imports, was really driven by the price component of the value. There’s a price reduction in imports that’s why the total value decreased," BSP Department of Economic Statistics Senior Director Redentor Paolo Alegre Jr. said.
“The main driving factor, if you look at the reduction of value of imports, was really driven by the price component of the value. There’s a price reduction in imports that’s why the total value decreased," BSP Department of Economic Statistics Senior Director Redentor Paolo Alegre Jr. said.
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"While if you look at exports, it was driven by the volume of exports that drove higher export values in the Philippines,” he added.
"While if you look at exports, it was driven by the volume of exports that drove higher export values in the Philippines,” he added.
Lower net receipts were also recorded for trade in services with more transactions made in travel, financial services, and technical services.
Lower net receipts were also recorded for trade in services with more transactions made in travel, financial services, and technical services.
The BSP forecasts the country’s BOP to remain in surplus in 2024 until 2025 as exports and investments pick up along with global economic activity.
The BSP forecasts the country’s BOP to remain in surplus in 2024 until 2025 as exports and investments pick up along with global economic activity.
The Monetary Board approved a higher BOP surplus forecast of $1.6 billion for 2024 from its earlier projection of $700 million.
The Monetary Board approved a higher BOP surplus forecast of $1.6 billion for 2024 from its earlier projection of $700 million.
The central bank also forecasts $1.5 billion BOP surplus for 2025 from its earlier projection of $500 million deficit.
The central bank also forecasts $1.5 billion BOP surplus for 2025 from its earlier projection of $500 million deficit.
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However, risks to the BOP outlook persists as geopolitical tensions may have a spillover impact if prices of crude oil will be affected.
However, risks to the BOP outlook persists as geopolitical tensions may have a spillover impact if prices of crude oil will be affected.
BSP Senior Assistant Governor Iluminada Sicat added that persistent inflation pressures may reflect on the Philippines’ economic growth.
BSP Senior Assistant Governor Iluminada Sicat added that persistent inflation pressures may reflect on the Philippines’ economic growth.
“If they cannot address some if they cannot address some of the limitations faced b the economy in. terms of addressing some of the supply side, then this will impact inflation and prices of goods,” Sicat said.
“If they cannot address some if they cannot address some of the limitations faced b the economy in. terms of addressing some of the supply side, then this will impact inflation and prices of goods,” Sicat said.
Other risks to the BOP position include the impact of trade restrictions, disruption in global supply chain, and climate change.
Other risks to the BOP position include the impact of trade restrictions, disruption in global supply chain, and climate change.
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