BOP posts surplus of $238 million in first quarter
The balance of payments (BOP) position registered a surplus of $238 million in the first quarter, lower than the $3.5 billion surplus recorded in the first quarter of 2023. The BOP surplus declined in the first quarter due to lower net inflows in the financial account, notwithstanding the contraction in the current account deficit.
The current account deficit in the first quarter reached $1.7 billion (equivalent to -1.6 percent of GDP), lower by 60.6 percent than the $4.4 billion deficit (equivalent to -4.3 percent of GDP) posted in the first quarter of 2023.
This development reflected the narrowing trade in goods deficit and the expansion of net receipts in the primary and secondary income accounts. This was partly muted by the contraction of net receipts from trade in services.
The trade in goods deficit narrowed as exports rose and imports fell. An estimated 98.4 percent of the increase in the exports value was due to volume changes, while 99.1 percent of the decrease in the imports value was driven by price changes.
The capital account recorded net receipts of $16 million in first quarter, up by 11.5 percent from the $15 million net receipts recorded in the first quarter of 2023. This developed on account of the increase in net receipts from other capital transfers (to $17 million from $15 million).
The financial account registered net inflows (or net borrowings by residents from the rest of the world) of $4.9 billion in the first quarter of 2024, lower by 17.1 percent compared with the $5.9 billion net inflows posted in the first quarter of 2023.
This was attributable mainly to the decrease in net inflows in the other investment account. The decline, however, was tempered by the increase in the net inflows in the direct investment account, and the reversal of the portfolio investment account and financial derivatives account to net inflows (from net outflows).
Gross international reserves (GIR) amounted to $104.1 billion as of end-March, higher than the $101.5 billion level registered as of end-March 2023.
The peso averaged P55.96/US$1 in Q1 2024, appreciating by 0.2 percent from P56.06/US$1 in Q4 2023. However, on a year-on-year basis, the peso depreciated by 2.0 percent from P54.86/US$1 in Q1 2023. BSP
