The country posted a lower surplus in its current account in 2011 on account of the contraction in export earnings resulting from sluggish global demand.
Still, the surplus in the current account remained significant because remittances continued to be strong despite the problems now upsetting most labor markets abroad, the Bangko Sentral ng Pilipinas reported.
Data from the BSP showed that the surplus in the current account—which covers cash flows from trade in goods and services—reached $7.1 billion last year, down by 4.7 percent from the $8.9 billion reported the previous year.
The decline in the surplus was driven largely by the 6.9 percent drop in exports to $47.23 billion.
But the impact of lower exports was partly offset by current transfers, which include money sent in by Filipinos working overseas. Current transfers grew by 6 percent to 17.6 billion.
Remittances remained strong last year on the back of sustained global demand for Filipino workers.
Meantime, the BSP also reported that the country posted a lower surplus in its capital and financial account in 2011, as Filipino entities parked more of their funds abroad and settled debts to foreign creditors.
The outflows were only partly offset by inflows in the form of foreign direct investments and foreign portfolio investments.
The surplus in the capital and financial account, which covers cash flows in the form of portfolio and direct investments, reached $5.2 billion last year, down by 29 percent from the $7.4 billion of the previous year, data showed.