Philippines posts USD 706 million October BOP surplus

The Philippines recorded a balance of payments (BOP) surplus of USD 706 million in October 2025, signaling improved external accounts, according to the Bangko Sentral ng Pilipinas.

Despite the October surplus, the country posted a cumulative BOP deficit of USD 4.6 billion from January to October 2025, though the shortfall is gradually narrowing amid stronger inflows.

The October surplus coincided with an increase in gross international reserves, which rose to USD 110.2 billion as of end-October 2025.

The BSP said this level of reserves is equivalent to 7.4 months’ worth of imports of goods and payments of services and primary income, and is sufficient to cover 3.8 times the country’s short-term external debt based on residual maturity.

Gross international reserves include foreign-denominated securities, foreign exchange, gold, and other reserve assets that act as a buffer to finance imports, meet foreign debt obligations, stabilize the peso, and protect the economy from external shocks.

Historical BSP data show that the Philippines’ BOP has fluctuated sharply in recent years, with a deficit of USD 7.3 billion in 2022 followed by a surplus of USD 3.7 billion in 2023.

In 2024, the country posted monthly surpluses from March to September before slipping back into a deficit from October to December, ending the year with a surplus of USD 609 million.

The 2025 BOP trend has been more volatile, with a sharp deficit of USD 4.1 billion in January, partial recovery in February, and alternating surpluses and deficits in the succeeding months before the October surplus.

The balance of payments measures a country’s economic transactions with the rest of the world and is a key gauge of external stability.

The BSP continues to monitor these indicators as part of efforts to manage foreign exchange liquidity and support macroeconomic stability.