The Philippines' balance of payments posted a deficit of $3.6 billion in the second quarter, reversing the $905 million surplus recorded in the same quarter last year, the Bangko Sentral ng Pilipinas reported Friday.

The BoP, also known as the balance of international payments, is a statement of all transactions between entities in one country and the rest of the world over a defined period, such as a quarter or a year.

In a statement, the central bank said the reversal was due to a wider current account deficit of $7.9 billion in Q2 2022, compared with the $1.3 billion deficit recorded in the same quarter in 2021.

This development was driven by the widening trade in goods deficit, partly muted by the increase in net receipts in the primary and secondary income and trade in services accounts.

On the other hand, the financial account registered net inflows (or net borrowing by residents from the rest of the world) amounting to $2.87 billion in Q2 2022, stemming from sustained inflows in the foreign direct and other investment accounts.

Also, in a Friday meeting, the Monetary Board approved the new set of 2022 and 2023 BoP projections, stating that the outlook over the near term remains subdued as external risks have intensified relative to the last forecast round in June 2022.

The MB said the emerging 2022 overall BoP position is projected to post a higher deficit of $8.4 billion (-2.0 percent of gross national product) from the previous forecast of $6.3 billion (-1.5 percent of GDP), mainly due to the projected further widening of the current account deficit to $20.6 billion (-5.0 percent of GDP) from $19.1 billion (-4.6 percent of GDP), owing to the sustained acceleration of goods imports alongside moderation of goods exports.

"Goods imports are expected to continue to outperform goods exports with growth forecasted at 20.0 percent on the back of elevated international commodity prices and increased import requirements are given resumption in domestic economic activities," the BSP statement said.

Also, goods exports are seen to expand by a more modest rate of 4.0 percent amid expectations of continued softening global demand, persistent supply bottlenecks, and the rise in input costs.