The Philippines’ balance of payments (BOP) position returned to a surplus in February, supporting the government’s target surplus for the entire 2014.
Data from the Bangko Sentral ng Pilipinas (BSP) on Wednesday showed a BOP surplus of $345 million for February after reversing a $4.48-billion deficit in January.
Despite the reversal, however, the comulative BOP position for the first two months of the year remained at a deficit of $4.14 billion. This compares with last year’s cumulative BOP surplus of $5.09 billion.
For this year, the BSP targets the BOP to remain in surplus at $3 billion or 0.9 percent of the country’s gross domestic product.
Rafael Supangco, Angping and Associates Securities Inc. head of Research, said the BOP surplus in February could be attributed to the stabilizing financial markets, the influx of foreign hot money, and the possible recovery of exports because of the weaker peso.
“The Philippines is still in good shape. I think we’ll see more of the same [surplus]in the near term,” he said.