PH incurred $373-M payments deficit in January
The Philippines began 2026 with a balance of payments (BOP) deficit attributed to a seasonal rise in import payments and portfolio shifts by offshore investors navigating global uncertainties.
The country’s BOP—a gauge of whether more foreign currency is entering or leaving the economy—showed a deficit of $373 million in January, the Bangko Sentral ng Pilipinas reported on Thursday.
The shortfall was smaller than the $827 million deficit recorded in December 2025, reflecting a moderation in outflows.
Analysts noted that the gap partly reflected the country’s persistent trade imbalance and some foreign fund movements in local capital markets.
Those outflows were partially offset by steady remittances from Filipinos overseas as well as earnings from business process outsourcing (BPO) firms and the tourism sector.
“The deficit largely reflects seasonally strong import payments and profit remittances at the start of the year, alongside some portfolio repositioning amid global rate uncertainty,” said Robert Dan Roces, group economist at SM Investments. “The narrower gap versus December suggests external pressures have eased somewhat rather than worsened.”
For Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., the BOP gap reflected the needs of a developing economy.
“The BOP is still in deficit mainly because imports are outpacing exports,” Ravelas said. “That reflects strong domestic demand and infrastructure spending, while global demand for our exports—and services like BPO and tourism—has been softer.”
Despite the shortfall, the country maintained healthy buffers against external shocks. The gross international reserves reached $112.6 billion as of January, which can help the country finance its imports and foreign debt obligations during difficult economic times, as well as stabilize its currency.
The buffer funds—made up of foreign-denominated securities, foreign exchange and other assets including gold—could cover 7.5 months’ worth of imports of goods and payments of services and primary income, way above global adequacy standards.
