BOP surplus stays above $2 billion in 8 months

MANILA, Philippines — The Philippines managed to maintain a healthy balance of payments (BOP) surplus above $2 billion from January to August, according to the Bangko Sentral ng Pilipinas (BSP).

Data released by the central bank showed the Philippines posted a BOP surplus of $2.15 billion during the eight-month period, a reversal of the $5.49 billion shortfall recorded in the same period last year.

For August alone, the BOP deficit narrowed by 90 percent to only $57 million in August from $572 million in the same month last year, reflecting net outflows arising mainly from the national government’s payments of its foreign currency debt obligations.

“Notwithstanding the deficit in August, the cumulative BOP position registered a surplus of $2.1 billion in the first eight months of the year, which was a reversal of the $5.5 billion deficit recorded in the same period a year ago,” the BSP said.

The BOP is the difference in total values between payments into and out of the country over a period.

A surplus means more dollars flowed into the country from exports, remittances from overseas Filipino workers (OFWs), business process outsourcing earnings and tourism receipts than what flowed out to pay for the importation of more goods, services and capital.

“Based on preliminary data, this development reflected mainly the improvement in the balance of trade and the sustained net inflows from personal remittances, trade in services, and foreign borrowings by the national government,” the central bank said.

Data from the Philippine Statistics Authority showed the country’s trade deficit narrowed by 10.2 percent to $32.18 billion from January to July versus last year’s $35.84 billion.

During the seven-month period, imports