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THE country’s current account surplus narrowed in the first
quarter of the year due to a wider trade deficit, the Bangko Sentral
ng Pilipinas (BSP) said Thursday.
In a briefing, Cyd Amador-Tuanio, BSP managing
director, said the current account surplus declined by 39 percent to
$1.2 billion in the first three months this year. This figure is
equivalent to 2.9 percent of gross domestic product (GDP).
The country’s trade deficit widened to $2.6
billion at end-March, as merchandise imports growth of 14.7 percent
outpaced the 3.1 percent rise in exports.
“The current account remained in surplus at
$1.2 billion due to higher net current transfers, increased net
services receipts, and the lower deficit in the income account,”
Tuanio said.
Exports of goods declined in the first quarter
reflecting the economic slowdown in some partner countries, notably
the US. Exports reached $12.3 billion compared with $11.9 billion a
year ago. However, this was a deceleration from the 9-percent growth
enjoyed in the same quarter last year.
Imports of goods expanded to $14.9 billion from
the year-ago level of $13 billion. The growth was driven mainly by
higher purchases of mineral fuels and lubricants, consumer goods,
particularly rice, and capital goods. Both higher import prices and
volumes contributed to the rise in the import bill.
The BSP projected a trade deficit of $11.5
million this year, with a current account surplus of $4.1 billion.
Exports are expected to grow 5 percent to $51.8 billion while
imports would expand 10 percent to $63.3 billion.
Meanwhile, the capital and financial account
remained in surplus at $86 million, but 78.7-percent lower than the
$403 million in the same period last year. This developed as the net
inflow in the direct investment account was reduced by more than
half or 60.5 percent, notwithstanding the improvement in the
balances of both the portfolio and other investment accounts.
The capital and financial account consists of
capital transfers, direct investments, portfolio investments and
other forms of investments.
As a result, the balance of payments (BOP)
yielded a surplus of $1.7 billion in the first quarter this year,
20.8 percent higher than the $1.4 billion surplus registered in the
same quarter a year ago.
-- Maricel E. Burgonio
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