ASEAN KEY DESTINATIONS
PHL current account records $318M gap in Q1 2017
The country's current account registered a deficit in the first quarter of 2017, a reversal from the surplus a year earlier, due to wider shortfall in merchandise trade, the Bangko Sentral ng Pilipinas reported on Friday.
A component of the balance of payments, the current account posted a $318 million deficit from a $730 million surplus during the same period in 2016.
"This development emanated primarily from the widening of the trade-in-goods deficit as the growth in imports of goods outpaced that of exports of goods" Deputy Director for Department of Economic Statistics Fernando Silvoza explained in a press briefing in Manila.
The trade-in-goods deficit increased to $9.8 billion from $7.8 billion a year earlier due to the faster expansion in imports of goods at 19.2 percent relative to the 14.1 percent growth in exports.
"This is not exactly negative as it simply reflects economic momentum... Government is expected to increase spending," BSP Deputy Governor Diwa Guinigundo, for his part, said.
Net receipts in trade-in-services rose to $2.4 billion exceeding the $2 billion year-on-year.
"The 19 percent expansion was driven largely by higher net receipts in technical, trade-related and other business services, manufacturing services on physical inputs owned by others, and computer services combined with the reversal of financial services from net payments to net receipts during the quarter," Silvoza said.
Export revenue in business process outsourcing (BPO) services totaled $5.5 billion, up 9.9 percent from $5 billion.
The primary income account posted net receipts of $678 million, up 5.7 percent from $642 million.
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