November balance of payments deficit hits $2.3 billion — BSP

MANILA, Philippines — The country’s overall balance of payments posted a significant deficit of $2.3 billion (P93.69 billion) in November 2024, the Bangko Sentral ng Pilipinas (BSP) said on Thursday, December 19.

November’s balance of payments position marked an increase from the $724 million deficit in October and was also higher than the $216 million deficit recorded in November of last year.

The balance of payments position is a critical indicator of the country’s external financial stability, reflecting the overall balance between foreign currency inflows and outflows.

The central bank attributed the November to the national government’s net foreign currency withdrawals to settle its foreign debt obligations and cover expenditures, as well as the central bank’s net foreign exchange operations.

Despite the November shortfall, the cumulative balance of payments position from January to November 2024 recorded a surplus of $2.1 billion, according to the BSP.

However, this figure was lower than the $3.0 billion surplus registered during the same period in 2023. 

Preliminary data attributed the decline in the cumulative surplus to reduced net receipts from trade in services and lower net foreign borrowings by the national government.

These declines, according to the central bank, were partially offset by sustained net inflows from personal remittances and net foreign portfolio and direct investments.

The balance of payments deficit also contributed to a decrease in the country’s gross international reserves, which fell to $108.5 billion by the end of November 2024, down from $111.1 billion at the end of October.

The central bank highlighted that the level of gross international reserves remains sufficient as an external liquidity buffer, capable of covering 7.7 months' worth of imports, as well as payments for services and primary income.

Additionally, it is approximately 4.3 times the country’s short-term external debt based on residual maturity, according to the BSP.