payments (BOP) position posted a surplus for the fourth consecutive month in August, driven by higher merchandise exports and lower net outflows of foreign portfolio investments.
In August, the Philippines’ balance of payments had a surplus for the fourth month in a row. This was due to increased exports and decreased outflows of foreign portfolio investments.payments (BoP) position remained 5 year period
I have been experiencing a negative balance for the past 5 years.fifth straight
The central bank reported on Monday that the month of August saw a significant decrease in comparison to the previous year, primarily caused by the National Government’s foreign debt payments.
According to the latest numbers from the Bangko Sentral ng Pilipinas (BSP), the balance of payments deficit for the country was $57 million in August, a significant decrease of 90% from the $572-million shortfall seen in the same month last year.
crease in May.
From month to month, there was a 7.5% increase compared to the $53 million decrease in May.ficit in July.
valuation of the US dollar in 2 years
The US dollar experienced its biggest decline in value in two years during the August Balance of Payments gap.fi
Within a period of two months or beginning with the $606-million deficit observed in June.
The balance of payments (BoP) reports a nation’s economic transactions with other countries during a specific period. A deficit indicates that more funds left the economy than entered, while a surplus indicates that more money came into the Philippines.
According to the BSP, the BoP shortfall in August 2023 was a result of overall outflows due to the NG’s payments towards its foreign currency debts.
ficit a year ago.
flow of foreign direct investment”
“According to initial data, this progress primarily stemmed from the betterment of the trade balance and the consistent influx of foreign direct investment.”fl
The BSP stated that personal remittances, trade in services, and foreign borrowings by the NG were the main sources of inflows.
The Senior Economist at ING Bank N.V. Manila, Nicholas Antonio T. Mapa, stated that the BoP (Balance of Payments) was more favorable this year compared to the previous year, primarily because of a positive change in the trade balance.
Mr. Mapa stated in an e-mail that the trade deficit reached record lows last year, but there has been some improvement this year.
ﬁcit is expected to widen from 2019’s $36.7 billion to $39.5 billion in 2020
The trade deficit for the Philippines is predicted to increase from $36.7 billion in 2019 to $39.5 billion in 2020.fi
The trade deficit in July decreased to $4.2 billion due to a decline in both imports and exports. This resulted in a total first-half trade gap of $32.18 billion, which is lower than the $35.84 billion deficit in the same period last year.
According to a statement from Rizal Commercial Banking Corp’s Chief Economist Michael L. Ricafort, the current balance of payments surplus for the year is a result of the government’s foreign currency loans from commercial and multilateral sources.
These include global bond issuances and official development assistance (ODA), as well as the continued structural dollar inflows into the country via remittances, business process outsourcing revenues, and tourism receipts.
The eight-month balance of payments position was reported by the central bank.flects the fi
The gross international reserves (GIR) decreased by 0.4% to $99.6 billion at the end of August, down from $100 billion in July.
The GIR is equivalent to 7.4 months of imported goods, services, and primary income payments.
Additionally, it can provide coverage for the country’s short-term external debt up to 5.7 times the original maturity and 3.9 times the residual maturity.
Over the next few months, the nation’s balance of payments will receive backing from ongoing influx of US currency and potentially reduced trade deficit.fi
The individual known as Mr. Ricafort stated.
In September 2023, the National Government plans to offer $2 billion in retail bonds. They also intend to debut $1 billion in Islamic bonds in late 2023 or early 2024. These bonds will contribute to the country’s BoP and GIR later in the year, according to the speaker.
pen up the economy and ease restrictions
The authorities are preparing to loosen restrictions and stimulate the economy.ffer retail dollar bonds this month, as well as Islamic bonds or Sukuk bonds by yearend or early 2024.
to be in surplus
“For the remainder of the year, we anticipate the BoP to be in a surplus state.”flat with any potential worsening of the current account deficit possibly off
According to Mr. Mapa, the financial account is affected by incoming funds, such as dollar issuance and portfolio investment returns.
The central bank revised its forecast for the balance of payments this year, citing a potential decrease in both exports and imports of goods due to the current global economic climate.
The deficit is now estimated to be $127 million, which is much smaller than the previously predicted $1.2 billion deficit. It accounts for 0% of the gross domestic product (GDP), compared to the previous projection of -0.3% of GDP.
In 2024, the country’s balance of payments is expected to shift towards a $1-billion surplus, equivalent to 0.2% of GDP. This is an improvement from the previous forecast of a $0.5-billion deficit.
The BSP predicts the deficit in the current account.fi
The expected amount for the cit to reach is now $11.1 billion, which is 2.5% of the GDP. This is a decrease from the previous prediction of $15.1 billion, which was 3.4% of the GDP.
The nation’s trade deficit is predicted to decrease, resulting in a deficit of $10.3 billion, which is equivalent to 2.1% of the gross domestic product, by 2024.