The Philippine balance of payments (BOP) position recorded a $2.276-billion deficit in November 2024, marking its widest gap in over two years, according to data from the Bangko Sentral ng Pilipinas (BSP) released Thursday.
This latest figure surpasses the $724-million deficit in October and the $216-million deficit in November 2023. It is the largest deficit since September 2022, when it hit $2.338 billion.
The BOP reflects the country’s financial transactions with the global economy. A deficit indicates more funds flowing out than coming in, while a surplus reflects the opposite.
“The BOP deficit in November 2024 reflected the national government’s net foreign currency withdrawals to settle its foreign debt obligations and various expenditures, alongside the BSP’s foreign exchange operations,” the BSP said in a statement.
Debt Levels and External Liquidity
As of end-October, the national government’s total outstanding debt stood at P16.020 trillion, up by 0.8% or P126.95 billion compared to the previous month, according to the Bureau of the Treasury (BTr).
Despite the November deficit, the year-to-date BOP position remained in surplus at $2.1 billion, though lower than the $3.030-billion surplus recorded in the same period in 2023.
The BSP attributed the decline in the cumulative surplus to reduced net receipts from trade in services and lower foreign borrowings by the government. However, continued inflows from personal remittances, foreign portfolio investments, and direct investments helped offset the decline.
Gross International Reserves
The country’s gross international reserves (GIR) fell to $108.5 billion in November from $111.1 billion in October. The BSP emphasized that the reserves remain sufficient, covering 7.7 months’ worth of imports and payments for services and primary income, and representing about 4.3 times the country’s short-term external debt based on residual maturity.
The November deficit underscores the ongoing challenges in managing the country’s external position amid fluctuating global economic conditions and rising debt obligations.