MANILA, Philippines - The Philippines incurred a balance of payments (BOP) deficit of $79 million in in April, a reversal from the $1.084 billion surplus during the same month last year, according to the Bangko Sentral ng Pilipinas.
Despite the drop, the BOP in the January to April period remained at a surplus of $1.164 billion, versus year-ago's $4.577 billion.
The BOP is a summary of the economic transactions of a country with the rest of the world for a specific time period, with a surplus indicating foreign exchange earnings outstripping payments and a deficit the reverse.
The BSP expects a balance of payments surplus of $2.8 billion, or 1.1 percent of GDP, this year, sharply lower than the $10.18 billion surplus in 2011. This weak outlook is mainly due to the uncertainty in the global economy.
The central bank expects remittances to grow 5 percent this year, slower than last year's 7.2 percent growth. Remittances in the first quarter of the year grew 5.4 percent from a year earlier to $4.84 billion. - With Reuters