By Joann Santiago
MANILA, April 20 (PNA) — Payments by the national government of its liabilities resulted to a USD 244 million balance of payment (BoP) deficit for the Philippines in March 2015.
Data released by the Bangko Sentral ng Pilipinas (BSP) Monday showed that the deficit in the third month this year is a reversal from the USD 985 million surplus in the previous month but is lower than the USD 340 million deficit same period in 2014.
Amidst the deficit, the country registered an USD 877 million BoP surplus in the first quarter of the year, lower than the USD 1.1 billion surplus as of last February but way better than year-ago’s USD 4.48 billion deficit.
The central bank forecasts a USD 1 billion surplus in the country’s BOP position, which is the sum of a country’s total transaction with the rest of the world.
BSP Deputy Governor Diwa Guinigundo said that despite the BOP deficit last March, the surplus target for this year remains achievable.
”Even as we continue to reassess our BoP projections for 2015 and 2016, the current trends point to at least USD 1 billion surplus in the BoP,” he said.
The central bank official also said they continue to see a surplus in the country’s current account position, which includes inflows of remittances and business process outsourcing (BPO) receipts, and a recovery in the capital and financial accounts.
”The current account position based on our October 2014 projections is expected to turn in at least USD 6.8 billion surplus while the capital and financial accounts are expected to recover significantly from 2014’s external payments “bloodbath” following large volatilities in the global financial markets in relation to the taper tantrum,” he added.
In 2014, the country registered a USD 2.9 billion BoP deficit as a result of the volatilities in the international financial market due to the end of the Federal Reserve’s stimulus program.
The deficit was attributed to increase in net outflows in the financial account due after investors decided to withdrew their funds here after the Fed withdrew its stimulus program.
The financial account registered a USD 10.1 billion net outflow in 2014, more than four times the USD 2.2 billion in 2013.
Also, the capital account ended last year with a USD 101 million net receipts, lower than the USD 134 million posted in the previous year.
On the other hand, the current account posted a USD 12.6 billion surplus last year, higher than year-ago’s USD 11.4 billion because of lower trade-in-goods deficit among others. (PNA)