Fourth quarter BOP registers higher surplus; full-year 2018 deficit up

March 15, 2019

The balance of payments position (BOP) recorded a surplus of $2.8 billion in fourth quarter of 2018, higher than the $505 million surplus posted in the same quarter of the previous year, the Bangko Sentral ng Pilipinas (BSP) said Friday.

''This positive development stemmed mainly from higher net inflows in the financial account, mainly other investments and portfolio investments. These net inflows during the quarter surged on the back of strong investor confidence on the country’s sound macroeconomic fundamentals,'' the BSP said.

The current account remained in deficit, though lower, due to higher imports of raw materials and intermediate goods and capital goods as domestic economic activity continued to progress, the BSP said. 

   As a result, gross international reserves  amounted to $79.2 billion as of end-December, lower than the $81.6 billion level recorded in end-December 2017.

At this level, reserves may sufficiently cover seven months’ worth of imports of goods, and payments of services and primary income.

It was also equivalent to 4.9 times the country’s short-term external debt based on original maturity and 3.6 times based on residual maturity.DMS