The country’s balance of payments (BOP) surplus in May widened from a month earlier and reversed the negative position it posted a year earlier, but the year-to-date tally still significantly trailed the revised full-year projection of the BSP.
Data from the Bangko Sentral ng Pilipinas (BSP) on Monday showed that the BOP posted a $241 million surplus in May, higher than the $184 million surplus in April and a reversal of the $58 million shortfall a year earlier.
The central bank attributed the BOP surplus to “inflows from BSP operations and income from its investments abroad, which more than offset the payments for national government maturing foreign exchange obligations.”
“As real money funds weigh the Fed’s relatively more dovish recent comments and as the country’s domestic demand remains robust, the banking system sound, and inflation stable (in other words, our macro fundamentals are solid), we can expect to register more inflows in the months ahead,” Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr., told reporters in a text message.
On a year-to-date basis, however, the country’s BOP position remained lower than a year ago and still far below the BSP forecast for 2016.
The BOP surplus for the five months to May stood at $216 million, narrower than the $1.199 billion surplus during the same period in 2015.
Nevertheless, “the $2 billion projected BOP for full year is attainable given information we have now,” Tetangco said.
The BOP summarizes the country’s economic transactions with the rest of the world over a certain period. It consists of the current account, capital account and the financial account.