PH Posts $2 Billion BOP Deficit in March 2025

The Philippines recorded a balance of payments deficit of $2 billion in March 2025, a reversal from the $1.2 billion surplus posted in March 2024.

The deficit reflected the national government’s foreign currency withdrawals from its Bangko Sentral ng Pilipinas deposits to settle external debt, alongside the BSP’s net foreign exchange operations.

This brought the year-to-date BOP deficit to $3 billion, swinging from a $238 million surplus in the first quarter of 2024.

Preliminary data showed the widening trade in goods deficit as the main driver of the shortfall.

The decline was partly offset by sustained net inflows from personal remittances, foreign direct investments, and foreign borrowings by the national government.

The country’s gross international reserves stood at $106.7 billion as of end-March 2025, down from $107.4 billion at end-February.

The latest GIR level serves as a solid external liquidity buffer, enough to cover 7.4 months’ worth of imports and payments for services and primary income.

It also covers about 3.6 times the country’s short-term external debt based on residual maturity.