The Central Bank of the Philippines published full-year balance of payments data showing a USD 5.7 billion deficit (1.2 percent of GDP) in 2025, reversing a USD 609 million surplus (0.1 percent of GDP) in 2024. The outcome reflected softer financial account inflows amid tighter global financial conditions, alongside a narrowing current account deficit supported by improved trade performance and strong services-related receipts. Net inflows in the financial account declined as residents increased investments in foreign-issued debt securities, while foreign loan availments by domestic banks and net inflows of foreign direct investments also moderated. The current account deficit narrowed to USD 16.3 billion (3.3 percent of GDP) from USD 18.6 billion (4.0 percent of GDP), driven by an improved trade-in-goods balance on robust export growth and higher income receipts from overseas Filipinos, consistent with record cash remittances, while business process outsourcing receipts helped offset softer earnings in other services segments.
Central Bank of the Philippines 2026-03-13
Central Bank of the Philippines reports 2025 balance of payments swings to USD 5.7 billion deficit on weaker financial account inflows
The Central Bank of the Philippines reported a USD 5.7 billion balance of payments deficit (1.2% of GDP) for 2025, reversing a USD 609 million surplus (0.1% of GDP) in 2024. The deficit was due to reduced financial account inflows amid tighter global conditions, despite a narrowing current account deficit from improved trade and strong services receipts. Financial account net inflows declined as residents increased investments in foreign debt securities, while foreign direct investments and bank loans moderated.