ASEAN KEY DESTINATIONS
PHL payments position swings to $662-M deficit in Q3
The Philippine balance of payments (BOP) position registered a deficit in the third quarter of the year, from a surplus year-on-year,the Bangko Sentral ng Pilipinas (BSP) reported on Friday.
The payments position posted a $662-million shortfall in July to September, a reversal from $289 million of surplus in the second quarter.
In the third quarter of 2016, the BPO registered a surplus of $1 billion.
The BOP is a record of the country’s transactions with rest of the world in a particular period.
BSP Director Rosabel Guerrero noted the BPO shortfall was a result of higher outflows in the financial account—largely composed of direct and portfolio investments.
“Net outflows in the financial account increased to $855 million following the reversal of the portfolio investment account to net outflows which more than offset the significant improvement in net inflows of direct investments,” Guerrero said during a briefing in Manila.
The current account sums up of the balance of trade-in-goods and services and remittances.
In the third quarter of the year, the current account posted a $554-million surplus from a deficit of $30 million a year earlier.
“The current account surplus, however, was not adequate to offset the increased net outflows in the financial account, resulting in a deficit in the overall balance of payments position in the third quarter,” Guerrero noted.
“The current account surplus was spurred by the continued growth in exports of goods, BPO-related transactions and travel services, and personal remittances,” she said.
In the first nine months of 2017, the BOP yielded a $1.4-billion deficit from a $1.6-billion surplus in January to September last year.
“This development stemmed mainly from the reversal of the financial account to net outflows from net inflows a year ago,” Guerrero said.
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