The Central Bank of the Philippines published its balance of payments (BOP) developments showing a USD 4.5 billion deficit in Q4 2024, reversing a USD 1.9 billion surplus in Q4 2023, alongside a full-year 2024 BOP surplus of USD 609 million that was lower than the USD 3.7 billion recorded in 2023. The shift in the quarter was attributed to a higher current account deficit and a reversal to net outflows in the financial account. In Q4 2024, the current account deficit widened to USD 4.6 billion (-3.5 percent of GDP) from USD 1.0 billion (-0.8 percent of GDP), reflecting a larger merchandise trade gap and lower net receipts in trade in services and primary income, partly offset by higher net receipts in secondary income. The capital account recorded net receipts of USD 19 million (down from USD 22 million), while the financial account moved to net outflows of USD 2.9 billion from net inflows of USD 6.2 billion, driven by portfolio and other investment shifting to net outflows, partly tempered by higher net inflows in direct investment. For 2024, the current account deficit widened by 41.4 percent to USD 17.5 billion (-3.8 percent of GDP) from USD 12.4 billion (-2.8 percent), the capital account posted net receipts of USD 72 million (from USD 74 million), and the financial account registered USD 17.6 billion net inflows (up from USD 13.6 billion). Gross international reserves stood at USD 106.3 billion at end-2024 (up from USD 103.8 billion at end-2023), while the peso averaged PHP 58.15 per USD in Q4 2024 and PHP 57.29 per USD for full-year 2024.

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