BoP surplus hits $88M as of August

The country’s trade reported a surplus worth $88 million as of August resulting to a narrower deficit for the year, the Bangko Sentral ng Pilipinas said.

The latest BOP surplus was a reversal of the $57 million deficit seen in August last year, and an increase from the $62 million surplus as of July. 

Cumulatively, the surplus stood at $1.6 billion surplus in the first eight months of the year, although lower than the $2.1 billion surplus recorded from January to August last year.

BOP involves stocks and equities, imports and exports, capital transfers, fixed assets, gold, foreign exchange and special drawing rights held with the International Monetary Fund.

“This cumulative surplus reflected mainly the narrowing trade in goods deficit alongside the continued net inflows from personal remittances, trade in services, net foreign direct investments, net foreign borrowings by the National Government and net foreign portfolio investments,” BSP said.

Net inflows up according to the Philippine Statistics Authority, the country paid less for imported goods and services in recent months as the trade deficit already shrank to $29.9 billion from January to July, down from $31.8 billion seen during the comparable period.

Meanwhile, net inflows rose to $1.5 billion from $1.3 billion during the period.

Gross international reserves also expanded to  $107.9 billion as of end-August from $106.7 billion as of end-July.

Moving forward, Rizal Commercial Banking Corporation chief economist Michael Ricafort said more foreign investors will likely participate in the equity and bond markets as inflation and interest rates fall in the US.