MANILA – The Bangko Sentral ng Pilipinas (BSP) said that the Philippines balance of payments (BOP) deficit from the start of the year up to November is now at a total of $3.72 billion. This, after the country posted a BOP deficit of $314 million in November,
The central bank projects that by year end, the country will have a BOP deficit of $3.4 billion, as compared with last year’s BOP surplus of $5.1 billion.
BSP Governor Amando Tetangco Jr. said that a factor which affected the Philippines’ BOP position is the normalization of policy in the US, which resulted in a reallocation of assets among markets and economies,
The BOP indicates the transactions of the Philippines with other countries; summarizing trade, foreign investments (both direct or portfolio), and remittances from overseas Filipinos workers.
If the BOP posts a surplus, this means that more money went into the economy during a particular period; whereas a BOP deficit indicates the opposite.