The current account swung to a surplus of $28 million by end-September as net receipts in services tempered the widening trade-in-goods deficit.
Bangko Sentral ng Pilipinas (BSP) data released Friday showed the nine-month current account level was a reversal of the $454-million deficit posted a year ago.
“The improvement in the current account was attributed mainly to increased net receipts in the trade-in-services, and secondary and primary income accounts which negated the widening of the trade-in-goods deficit,” said Rosabel B. Guerrero, director at the BSP’s department of economic statistics.
Based on the updated balance of payments (BOP) projections for 2017, BSP thus expects the current account to hit a deficit of only $100 million, better than the projection of a $600-million deficit announced in June.
“The better-than-initially expected current account draws support from the continued expansion in overseas Filipino remittances as well as business process outsourcing and tourism receipts,” the BSP said.
Meanwhile, the trade-in-goods deficit as of September rose 9.8 percent year-on-year to $28.9 billion as imports grew 13.3 percent to $65.6 billion, exceeding exports of $36.7 billion. The latter even increased by a faster 16.2 percent.
Guerrero said the jump in imports came on the back of increased importation of mineral fuels and lubricants, raw materials and intermediate goods. Exports, meanwhile, climbed due to higher shipments of manufactured goods.