The country’s balance of payments (BOP) position recorded a surplus of USD609 million last year, the Bangko Sentral ng Pilipinas (BSP) said.
Data released by the BSP late Monday showed that the surplus last year was down from the USD3.7 billion recorded in 2023.
The BOP summarizes a country’s economic transactions with the rest of the world for a specific period.
The overall position can be in surplus, deficit, or balance.
“Based on preliminary data, the decline in the cumulative BOP surplus was due to higher trade in goods deficit, and lower net receipts from trade in services and net foreign borrowings by the NG (national government),” the BSP said.
The BSP, however, said the decline was partly muted by the continued net inflows from personal remittances as well as net foreign portfolio and direct investments.
Meanwhile, the BSP said the BOP position reflects a decrease in the final gross international reserves (GIR) level to USD106.3 billion as of end-December 2024 from USD108.5 billion as of end-November 2024.
Despite the decline, the BSP said the latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.5 months’ worth of imports of goods and payments of services and primary income.
“Moreover, it is also about 3.7 times the country’s short-term external debt based on residual maturity,” the BSP said. (Anna Leah Gonzales, PNA)
