ASEAN KEY DESTINATIONS
Philippines has dollar surplus
Bank Governor Amando Tetangco Jr. said there are indications the balance of payments (BOP) is in surplus in the first eight months of the year. The country’s BOP registered a surplus of $91 million in July, or lower than the $506 million registered in the same month last year.
The July surplus brought the BOP surplus to a cumulative $3.3 billion in the first seven months of the year, or 22.2 percent higher than the $2.722 billion recorded last year.
The BOP summarizes the country’s economic transactions with the rest of the world, with a surplus indicating dollar earnings outstripping payments. A deficit in contrast would erode the country’s dollar reserves.
For this year, the BSP projects a full-year BOP surplus of $3.7 billion from an earlier forecast of $3.2 billion, assuming the country’s current account position will continue to improve.
Current account transactions cover trade in goods, services, income and current transfers.
The BSP expects these transactions will improve to $8.6 billion this year, accounting for 4.6 percent of the domestic economy, from an earlier projection of $4.5 billion.
According to monetary authorities, this will get a boost from the country’s external merchandise trade amid a better-than-expected expansion in the first quarter.
The central bank had revised its exports projections to expand by 15 percent from 12 percent, while imports growth would accelerate to 20 percent from 18 percent.
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