The country’s balance of payments (BOP) posted a surplus of USD609 million in 2024, a decline from the USD3.7 billion surplus in 2023, according to the Bangko Sentral ng Pilipinas (BSP). This, the BSP said, was driven by a widened current account deficit, which grew by 41.4 percent to USD17.5 billion for the year. The deficit stemmed from a larger trade deficit and reduced receipts in services, partially offset by increased income transfers.
However, the financial account posted strong performance, with net inflows reaching USD17.6 billion in 2024, a 29.6 percent increase compared to the previous year. This was largely due to a reversal of portfolio investment accounts and robust direct investment inflows. The capital account recorded modest net receipts of USD72 million, reflecting a slight decline from the prior year.
In Q4 2024, the BOP position shifted to a deficit of USD4.5 billion, reversing the USD1.9 billion surplus in Q4 2023. The downturn was driven by a higher current account deficit of USD4.6 billion and a shift to net outflows in the financial account, despite strong foreign direct investment.
The country’s gross international reserves rose to USD106.3 billion by the end of 2024, up from USD103.8 billion in 2023. Meanwhile, the Philippine peso depreciated by 3.6 percent year-on-year, averaging P57.29/USD1 for the year.
BSP’s management of the financial account, alongside continued growth in foreign investments, provided stability, despite challenges in the external trade environment.
