PH posts balance of payments deficit anew in April

MANILA -- The Philippines again posted a balance of payments (BOP) deficit of $2.6 billion in April, higher than the $639 million deficit seen in the same month last year.

The country also posted a balance of payments deficiency in March.

PH posts balance of payments deficit in March

The Bangko Sentral ng Pilipinas (BSP) said this reflects the national government's drawdowns on its foreign currency deposits with the BSP to meet its external debt obligations, as well as the BSP’s net foreign exchange operations.

Year-to-date, there is also a deficit of $5.5 billion, higher than the $401 million deficit seen in the same period in 2024. 

The central bank said this is because of a widening trade in goods deficit, but noted that the drop was cushioned by continued net inflows of personal remittances from overseas Filipinos and foreign borrowings by the national government.

Meanwhile, the Philippines' gross international reserves fell to $105.3 billion, from $106.7 billion in March.

The BSP said the GIR remains a robust external liquidity buffer, equivalent to 7.3 months’ worth of imports of goods and payments for services and primary income. 

It is also 3.7 times the country’s short-term external debt based on residual maturity.

The central bank said maintaining an adequate level of reserves is critical in supporting the Philippine economy’s resilience against external shocks.

In March, the BSP said the Philippines is likely to post a weaker balance of payments position this year and next year, as global economic growth may remain soft through 2026.

Philippines likely to see balance of payments deficit: BSP