The Central Bank of the Philippines published first-quarter 2025 balance of payments data showing a USD 3.0 billion deficit, reversing a USD 238 million surplus a year earlier, as a wider current account deficit outweighed gains elsewhere. The shortfall was partly offset by substantial financial account inflows. The current account deficit doubled to USD 4.2 billion, or 3.7 percent of GDP, from USD 2.1 billion, or 1.9 percent of GDP, driven by a widening merchandise trade gap as imports grew faster than exports and weaker net revenues from services due to lower transport receipts and higher outbound travel spending, partly moderated by higher remittances from overseas Filipinos. The financial account recorded net inflows of USD 6.7 billion, up 43.2 percent year on year, reflecting higher net inflows in direct and other investments alongside sustained portfolio inflows, while the capital account surplus rose to USD 23 million. Gross international reserves stood at USD 106.7 billion at end-March 2025, and the peso averaged PHP 57.97 per USD in Q1 2025, appreciating versus Q4 2024 but depreciating year on year.
Central Bank of the Philippines 2025-06-13
Central Bank of the Philippines reports USD 3.0 billion balance of payments deficit in Q1 2025 as current account gap widens
The Central Bank of the Philippines reported a USD 3.0 billion balance of payments deficit for Q1 2025, reversing a USD 238 million surplus from the previous year, due to a wider current account deficit. The current account deficit doubled to USD 4.2 billion, driven by a growing merchandise trade gap and weaker net service revenues, partially offset by higher remittances. Financial account net inflows rose 43.2 percent to USD 6.7 billion, with gross international reserves at USD 106.7 billion and the peso averaging PHP 57.97 per USD.