The Philippines posted a balance of payments (BOP) surplus of US$359 million in August 2025, significantly higher than the US$88 million surplus posted in the same month last year, according to the Bangko Sentral ng Pilipinas (BSP).
The BSP attributed the surplus primarily to its net income from investments abroad, which also helped trim the year-to-date BOP deficit to US$5.4 billion as of end-August, down from US$5.8 billion in the January–July 2025 period.
Despite the improvement, the BOP remains in deficit due to the persistent trade in goods gap, which reached US$28.5 billion from January to July 2025. However, this was narrower than the US$29.9 billion deficit recorded in the same period last year. The trade deficit was partly cushioned by robust inflows from overseas remittances, foreign borrowings, and foreign direct and portfolio investments.
The BOP surplus also contributed to an increase in the gross international reserves (GIR), which rose to US$107.1 billion by end-August from US$105.4 billion in July. According to the BSP, this level of reserves is sufficient to cover 7.2 months’ worth of imports and payments and is 3.7 times the country’s short-term external debt based on residual maturity.
A healthy BOP position and ample reserves support currency stability, ensure payment for imports and external obligations, and act as a buffer against external shocks, enhancing the country’s economic resilience.
The gross international reserves consist of foreign-denominated assets such as securities, foreign exchange, and gold, and are a key indicator of a country’s external liquidity and creditworthiness.
