Philippines posts USD 82M surplus in September BOP

By Francis Allan L. Angelo

The Philippines recorded a balance of payments (BOP) surplus of USD 82 million in September 2025, according to data released by the Bangko Sentral ng Pilipinas (BSP).

This is significantly lower than the USD 3.5 billion surplus posted in the same month in 2024, reflecting shifting external economic dynamics.

The BSP said the surplus was driven mainly by its net income from investments abroad and net foreign currency deposits by the national government.

This surplus helped trim the cumulative BOP deficit to USD 5.3 billion from January to September 2025, slightly down from USD 5.4 billion recorded in the first eight months.

The year-to-date BOP deficit continues to stem largely from the country’s trade in goods deficit, which reached USD 32.4 billion for January to August 2025.

That figure is an improvement from the USD 34.3 billion deficit during the same period in 2024, based on preliminary data from the Philippine Statistics Authority.

Offsetting the trade gap were steady inflows from overseas Filipino remittances, service exports, foreign direct and portfolio investments, and external borrowings by the national government.

The BOP surplus also aligned with the increase in the country’s gross international reserves (GIR), which climbed from USD 107.1 billion at the end of August to USD 109.1 billion by the end of September 2025.

The current GIR level is sufficient to cover 7.3 months of imports and payments for services and primary income, affirming the country’s strong external liquidity position.

It also covers approximately 3.8 times the Philippines’ short-term external debt based on residual maturity, offering further reassurance to markets.

The BSP noted that GIR are composed of foreign securities, foreign exchange assets, and gold, which act as a buffer to support the peso and guard against global financial shocks. This is crucial for investors, policymakers, and global financial institutions monitoring the country’s economic resilience and ability to meet its international obligations.

Maintaining a healthy BOP and robust GIR signals macroeconomic stability, helping preserve investor confidence amid uncertainties in global trade and capital flows.