The Central Bank of the Philippines reported that the country’s balance of payments posted a USD 5.3 billion deficit in the first quarter of 2026, equal to 4.5 percent of gross domestic product, compared with a USD 3.0 billion deficit, or 2.6 percent of gross domestic product, a year earlier. The wider deficit reflected weaker financial inflows, mainly from external debt repayments and softer foreign direct investment, together with higher import costs that widened the current account deficit. The drop in financial account net inflows was driven largely by lower net inflows in other investments as banks repaid foreign loans and nonresidents withdrew currency and deposits from local banks. Direct investments remained in net inflow but slowed, while net portfolio investment outflows eased as residents cut investments in foreign debt securities, partly offset by foreign investors’ withdrawals from Philippine debt securities. On the current account, the goods trade deficit widened, dividend inflows softened and interest earnings from direct investments and reserve assets fell. The services surplus also narrowed as payments for business and travel-related services rose faster than receipts, although electronics exports, tourism, manufacturing services, business process outsourcing revenues and remittances from overseas Filipinos continued to provide support.
Central Bank of the Philippines2026-06-26
Central Bank of the Philippines reports Q1 2026 balance of payments deficit widens to USD 5.3 billion
The Central Bank of the Philippines said the country’s balance of payments deficit widened to USD 5.3 billion in the first quarter of 2026 from USD 3.0 billion a year earlier. The deterioration reflected weaker financial inflows, including debt repayments and softer foreign direct investment, as well as a wider current account deficit driven by higher import costs. Services exports and remittances remained supportive but did not offset the broader external pressure.