MANILA—The Philippines posted a balance of payments (BOP) deficit of USD 9 million in January this year, lower than the USD813 million a year ago and the USD214 million deficit last December, data released by the Banko Sentral ng Pilipinas Monday showed.
BSP Deputy Governor Diwa Guinigundo, in a text message, Monday traced the BOP deficit to “carryover of the negative sentiment we saw in December 2016.”
Guinigundo said the central bank had not received the “trade, services and financial components (of the BOP) but the headline numbers indicate that debt payments by NG (national government) and FX (foreign exchange) operations of the BSP brought about the small deficit during the month.”
He, however, said “some partial offsets were seen in the NG FX deposits as well as BSP’s investments income from abroad.”
“We expect a turnaround during the year on account of the country’s continued resilience and strong macroeconomic fundamentals,” he added.
The country ended 2016 with a USD420 million BOP deficit, way below the central bank’s assumption of a USD500 million surplus.
The BSP’s BOP assumption this year is a surplus of USD1 billion. \