'Higher BOP surplus to persist until 2025'

The Bangko Sentral ng Pilipinas (BSP) anticipates further improvement in the country's external payments position this year, attributing it to stronger inflows that will result in a higher balance of payments (BOP) sur- plus

- KEISHA TA-ASAN

In a statement, the central bank said the Philippines is expected to post a higher BOP surplus of $2.3 billion or 0.5 percent of gross domestic product, from the previous forecast of $1.6 billion or 0.3 percent of GDP a quarter ago.

For 2025, the BSP raised its BOP surplus projection to $1.7 billion or 0.3 percent of GDP as of the third quarter from $1.5 billion or 0.3 percent of GDP as of the second quarter.

“The latest set of forecasts indicates an improvement in the overall BOP position for 2024 and 2025 relative to the June 2024 projection exercise,” the BSP said.

“This development is underpinned mainly by the sustained positive global and domestic economic growth prospects, decelerating inflation as well as the pickup in world trade activity.”

The BOP is the difference in total values between payments into and out of the country over a period.