Philippines posts US$3.14 billion September balance of payments deficit

The Philippines recorded a US$3.14 billion balance of payments deficit in September, its biggest monthly shortfall since January 2025, according to Bangko Sentral ng Pilipinas (BSP) data. The central bank cited a continuing goods trade deficit and net foreign portfolio investment outflows as pressures on the country's external accounts.

September's deficit exceeded the US$596 million August shortfall by more than five times and contrasted with a US$82 million surplus a year earlier. For January–September, the deficit totalled US$9.09 billion, a 71 per cent increase from US$5.32 billion in the corresponding period last year.

The BSP said remittances from Filipinos overseas, government borrowing abroad, services trade and foreign direct investment provided inflows that partly countered those pressures. The balance of payments tracks transactions between the Philippines and the rest of the world; a deficit indicates that foreign currency outflows were greater than inflows.

Gross international reserves stood at US$99.49 billion at the end of September, falling 5.1 per cent from August's US$104.85 billion. They were also 8.8 per cent below the US$109.06 billion recorded a year earlier.

The BSP linked the reserve decline mainly to net foreign exchange operations, reduced valuations of gold and foreign currency reserve assets, and government withdrawals to service external debt, alongside other net foreign currency withdrawals. It said reserves remained adequate to fund 6.2 months of goods imports and payments for services and primary income.