Philippines' BOP back to deficit in November

ABS-CBN News

Posted at Dec 20 2014 07:08 AM | Updated as of Dec 20 2014 03:08 PM

MANILA - The Philippines posted a balance of payments (BOP) deficit of $314 million in November, the Bangko Sentral ng Pilipinas (BSP) said.

The latest figure brought the BOP deficit in the 11 months to November to $3.72 billion.

The central bank expects the country to end the year with a balance of payments deficit of $3.4 billion, as foreign investors shift funds overseas, although it raised its forecast for this year's current account surplus to $6.6 billion, above the previous estimate of $6 billion.

Last year, the country had a BOP surplus of $5.1 billion and a current account surplus of $9.4 billion.

The country's BOP position has been affected by the normalization of policy in the US since this resulted in a reallocation of assets among markets and economies, BSP Governor Amando Tetangco Jr. earlier said.

The BOP is a summary of a country’s transactions with the rest of the world based on trade, foreign direct and portfolio investments, and remittances from Filipinos overseas.

A surplus indicates that more money went into the economy during the period, while a deficit indicates otherwise.

The BSP, meanwhile, has lowered its estimate for 2014 foreign reserves to $79 billion from $85.3 billion.

The central bank expects cash remittances from overseas Filipinos to rise 5 percent this year after growth of 6.4 percent in 2013 when they hit a record $22.97 billion. -- With Reuters