The country’s balance of payments (BOP) swung to a deficit in October amid volatility across global markets due to a looming US Fed rate hike.
The latest Bangko Sentral ng Pilipinas data released Friday showed that the deficit of $183 million in October reversed the surpluses of $117 million in September and $469 million in October last year.
A deficit meant that the amount of dollars that left the economy that month was more than those that came in.
October’s deficit brought to a halt seven straight months of BOP surpluses.
The year actually started with two consecutive months of deficits—$813 million in January and $251 million in February.
At the end of the first 10 months, the country’s BOP position stayed at a cumulative surplus of $1.465 billion.
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 that the supply of dollars in the economy remains ample to allow the government as well as businesses to transact with the rest of the world.
Sources of dollar income for the country include remittances from Filipinos overseas, sales from exports of goods and services, and foreign investments and revenues from industries such as business process outsourcing and tourism.
“We view the Philippines’ pivot toward China as a net positive for 2017 GDP [gross domestic product] and balance of payments, as it will help bring in more FDI [foreign direct investment] and tourism from China in 2017 with political drags removed,” Credit Suisse said.