The Philippines recorded a $225 million balance of payments (BOP) deficit in November 2025, bringing the year-to-date shortfall to US$4.8 billion, according to official data. The BOP tracks the country’s transactions with the rest of the world, and the deficit indicates that more foreign currency flowed out than came in during the period.
Despite the imbalance, the country’s gross international reserves (GIR) rose to US$111.3 billion at end-November, providing a strong external buffer. The reserve level is enough to cover 7.4 months of imports and service payments and about four times the country’s short-term external debt.
Economists see the combination of a manageable BOP shortfall and ample reserves as a sign that the economy can absorb external pressures, meet import and debt obligations, and support currency
The moderate BOP deficit and robust reserves suggests the economy retains ample capacity to finance imports, service foreign debt, and cushion the peso against external shocks, even amid uncertain global conditions.
