Eurozone jitters narrow Sept. BOP surplus

The country posted a lower surplus in its balance of payments (BOP) in September, as the eurozone-induced jitters caused the pullout of portfolio investments from many emerging markets including the Philippines.

The decline in the surplus was also partly blamed on weaker export income, as the lackluster performance of Western economies led to lower demand for goods exported by countries like the Philippines.

The country’s BOP surplus reached $719 million in September, a sharp drop from the $3.06 billion registered in the same month last year, data from the Bangko Sentral ng Pilipinas showed.

This 76-percent decline in the surplus dampened the BOP figure for the first nine months of the year, but it was nonetheless higher than that recorded from a year ago.

From January to September, the cumulative BOP surplus reached $9.721 billion, still up by nearly 51 percent from $6.44 billion in the same period last year.

In September, financial markets worldwide witnessed pullout of portfolio assets, including those from emerging markets. This was traced to the prolonged debt crisis in the eurozone that has dampened the outlook of portfolio investors on the global economy.

Financial market players said the extended crisis in the West prompted investors to think that even better-performing economies, such as the Philippines and its neighbors, will be adversely affected by the turmoil.

The euro zone is a key export market for the Philippines. It is also the second home to many overseas Filipino workers, whose remittances largely fuel household consumption.