The Philippines incurred a balance of payments deficit of $3.72 billion for the first eleven months of the year, a reversal from the $4.67 billion surplus during the same period in 2013.
The Bangko Sentral ng Pilipinas reported that the end November deficit was wider than the $3.41 billion recorded as of October.
For November alone, the BOP recoded a deficit of $314 million, a turnaround from the $24 million surplus recorded in October, and $837 million surplus incurred in November 2013.
In the third quarter, the country’s BOP position yielded a surplus of $712 million for the three-month period, lower by 42.9 percent from the $1.2 billion surplus recorded a year earlier.
The central bank said the lower quarterly surplus developed mainly on account of the net outflows (or net lending of Philippine residents to the rest of the world) in the financial account.
The financial account yielded net outflows of $1.1 billion in the third quarter, a reversal of the $314 million net inflows registered a year ago.
Meanwhile, the surplus in the current account during the quarter improved, buoyed by the narrowing of the trade-in-goods deficit and the sustained increase in the net receipts in the secondary income account.
The current account recorded a surplus of $3 billion (equivalent to 4.4 percent of the country’s gross domestic product) in the third quarter, rising by 15 percent relative to the $2.6 billion surplus in the same quarter last year.
The BOP summarizes the country’s economic transactions with the rest of the world over a certain period. It consists of the current account, the capital account, and the financial account.
The central bank has projected a $3.4 billion BOP deficit this year from a surplus of $5.09 billion in 2013.