Remittances, foreign investments propel Philippines to $2.21 billion BOP surplus in seven months

The Philippines has recorded a balance of payments (BOP) surplus of $2.207 billion during the first seven months of the year, benefiting from increased remittances and foreign direct investments, according to the Bangko Sentral ng Pilipinas (BSP).

This BOP surplus at the end of July marks a turnaround from the $4.92 billion deficit registered during the same period in 2022, although it is slightly lower compared to the $2.26 billion surplus at the end of June 2023.

The BOP is a comprehensive record of a country’s economic interactions with the global economy over a specific period. It encapsulates financial transactions between residents and non-residents, as described by the BSP.

Preliminary data from the Philippine Statistics Authority showed that the trade deficit from January to July 2023 reached $28 billion, down from the $29.8 billion reported during the same period in 2022.

Gross international reserves (GIR) stood at $100 billion at the end of July, surpassing June’s figure of $99.4 billion.

This revised GIR level is considered to be a robust external liquidity buffer for the Philippines, equating to 7.4 months’ worth of imports of goods and payments of services and primary income, and roughly 5.9 times the nation’s short-term external debt based on its original maturity, as well as 4.1 times based on residual maturity.