PH BOP Deficit Widens to $2.6B in April 2025

The Philippines posted a balance of payments (BOP) deficit of US$2.6 billion in April 2025, significantly widening from the US$639 million deficit recorded in April 2024, the Bangko Sentral ng Pilipinas (BSP) reported.

The larger deficit was attributed to the national government’s withdrawal of foreign currency deposits from the BSP to service external debt and finance various expenditures.

The BSP also cited its own net foreign exchange operations as contributing to the monthly BOP shortfall.

This brought the cumulative BOP deficit for the first four months of 2025 to US$5.5 billion, a sharp increase from just US$401 million over the same period last year.

According to preliminary data, the year-to-date BOP shortfall reflects primarily the widening trade in goods deficit, which reached US$12.7 billion from January to March 2025, compared with US$11.3 billion in the same period in 2024, based on Philippine Statistics Authority data.

Despite the growing deficit, continued net inflows from overseas Filipino remittances and foreign borrowings by the national government provided some relief.

The country’s gross international reserves (GIR) stood at US$105.3 billion as of end-April, down from US$106.7 billion in March.

The GIR level is equivalent to 7.3 months’ worth of imports of goods and payments of services and primary income, serving as a strong external liquidity buffer.

It also covers about 3.7 times the country’s short-term external debt based on residual maturity, ensuring sufficient foreign exchange to meet financing needs under stress conditions.

While the current BOP pressures are tied largely to rising import and debt servicing demands, authorities said the country remains in a position to weather external shocks.

The BSP continues to monitor external sector developments and currency market conditions, aiming to maintain price and financial stability in light of global uncertainties.