The economy posted a balance of payments (BOP) surplus of $184 million in April, the second straight month that more dollars entered the country.
Bangko Sentral ng Pilipinas (BSP) data released Thursday showed the surplus at the start of the second quarter was nonetheless smaller than the $380 million registered a year ago as well as the $854 million in March.
A surplus meant the amount of dollars that entered the economy on a particular month was more than the amount that left.
“The BOP surplus for April of $184 million could be traced mainly to foreign exchange deposits of the national government and income from BSP operations. This helped to further reduce the cumulative deficit for the year to $90 million,” BSP Governor Amando M. Tetangco Jr. said in a text message to reporters.
“With the good GDP [gross domestic product] data released on Thursday and continued buoyancy in the domestic financial markets, we would expect a reversal in the overall cumulative BOP position to a surplus going forward,” Tetangco said.
The government reported Thursday the economy grew 6.9 percent in the first quarter, the fastest in almost two years and the highest first-quarter growth rate in major Asian economies.
However, the country’s BOP position at the end of the first four months remained at a deficit, although at a narrower $90 million from $275 million a month ago.
The end-April BOP deficit was also a reversal of the $1.257-billion surplus in the first four months of last year.
The country posted BOP deficits during the first two months—$813 million in January and $316 million in February.
Still, the BSP is projecting a $2.2-billion BOP surplus by yearend.
The BOP is a summary of all the businesses the country does with the rest of the world.
BOP data is tracked closely to ensure the supply of dollars in the economy remains ample to allow the government as well as businesses to transact outside the country.
Sources of dollar income for the country include remittances from Filipinos overseas, sales from exports of goods and services, as well as foreign investments and revenues from industries such as business process outsourcing and tourism.
The country uses the dollars it earns for the importation of goods, such as food and fuel, and also for external debt payments.