Philippines records $298M BoP deficit in May

The Philippines recorded a balance of payments (BoP) deficit of $298 million in May, marking the third consecutive month of deficits.

This deficit was driven by the national government's drawdowns on its foreign currency deposits to meet external debt obligations, resulting in a year-to-date BOP deficit of $5.8 billion as of May 2025.

Despite this, gross international reserves (GIR) remain healthy at USD105.2 billion in May, sufficient to cover seven months' worth of imports and payments of services and primary income.

The continued trade in goods deficit was partly offset by sustained net inflows from personal remittances from overseas Filipinos, foreign borrowings by the national government, and foreign portfolio investments.

At this rate, the BOP deficit is running above the Bangko Sentral ng Pilipinas (BSP) forecast of a $4 billion shortfall for the whole year.