July balance of payments surplus hits 6-month high
Strong foreign investments, remittances flow
More News from Philippine Daily Inquirer
The country’s balance of payments (BOP) surplus hit a six-month high of $1.099 billion in July.
Data released by the Bangko Sentral ng Pilipinas (BSP) showed that the July figure was the highest since January, when the BOP surplus reached $2.043 billion.
This was achieved as foreign investors returned to the Philippines after pulling out in droves in June amid widespread aversion to emerging markets in view of the reported tapering of the US Fed’s bond-buying program.
The BOP position is the summary of all transactions between the country and the rest of the world. A surplus in the BOP indicates that more money came into the country than the money that went out during a given period.
The surplus in July was also significantly higher than the June surplus of $692 million.
For January to July, the country’s BOP surplus reached $3.677 billion, lower than the $4.498 billion a year ago.
Latest available data showed that foreign investments in local stocks, bonds and government securities reached a net inflow of $895 million in July, a turnaround from the $23 million outflow recorded the month before.
Another major component contributing to the surplus in the BOP are remittances from overseas Filipino workers, which are expected to reach $22.5 billion this year, up by 5 percent from the 2012 level.
Remittances from OFWs reached $10.7 billion in the first half this year amid sustained demand for skilled Filipino labor, the BSP said earlier this month.
For June alone, remittances reached $1.916 billion, up 5.8 percent year on year.
Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94