September 14, 2025 | 12:00am
MANILA, Philippines — The nation’s present account deficit eased to $5 billion within the second quarter, down by 15.8 % from $5.9 billion a yr in the past, as stronger exports helped trim the commerce hole, in accordance with the Bangko Sentral ng Pilipinas (BSP).
“This growth mirrored the narrowing commerce in items deficit, alongside the will increase in web receipts within the main and secondary revenue accounts,” the BSP mentioned. “Nevertheless, these positive aspects had been partly muted by the decrease web receipts from commerce in providers.”
The present account information a rustic’s commerce in items and providers, revenue from overseas and secondary transfers corresponding to remittances. A deficit means the Philippines spends extra on imports and different exterior funds than it earns from exports and inflows.
The narrower deficit, equal to -4 % of gross home product from -5.2 % of GDP in the identical quarter final yr, was supported by resilient shipments of copper anodes, electronics and mineral exports corresponding to nickel and gold.
Exports of products surged by 17.5 % to $16.3 billion, outpacing the 4.9-percent rise in imports to $32.3 billion. This helped slender the commerce in items deficit to $16 billion from $17 billion final yr.
Remittances from abroad Filipino staff additionally offered regular inflows, offsetting weaker providers receipts resulting from larger outbound journey spending. Remittance inflows climbed by 3.4 % to $7.2 billion throughout the quarter.
Regardless of the narrower present account shortfall, the Philippines nonetheless booked an total steadiness of funds (BOP) deficit of $2.6 billion within the second quarter, reversing the $1.2-billion surplus a yr in the past.
The BSP attributed this to weaker monetary inflows as native banks repaid international loans and international buyers turned extra cautious amid world market uncertainties.
Yr up to now, the present account deficit stood at $9.2 billion within the first half (equal to -3.9 % of GDP), 13.6 % larger than the $8.1 billion deficit (-3.6 % of GDP) recorded from January to June 2024.
“The growth was primarily attributable to the bigger commerce in items deficit and the decrease web receipts from commerce in providers. This growth was partly mitigated by the upper web receipts recorded in each the first and secondary revenue accounts,” the BSP mentioned.
The commerce in items deficit widened by 2.8 % to $32.5 billion within the first half from the $31.7 billion deficit posted in the identical interval final yr. This was because of the larger absolute enhance in imports in comparison with exports.
The nation’s BOP place additionally posted a deficit of $5.6 billion within the first semester, reversing the $1.4-billion surplus a yr in the past.
“The shift to a BOP deficit was primarily pushed by decrease web inflows within the monetary account, together with a wider present account deficit,” the BSP mentioned. “Monetary account web inflows declined as portfolio funding moderated, largely resulting from residents’ investments in international debt securities.”
The BSP expects the nation’s BOP to succeed in a deficit of $6.3 billion (-1.3 % of GDP) this yr, earlier than narrowing to a $2.8 billion hole (-0.5 % of GDP) in 2026.
It additionally sees the present account deficit hitting $16.3 billion (-3.3 % of GDP) in 2025 and $13.6 billion (-2.5 % of GDP) subsequent yr.
