Current account stood at a surplus of $3.7B in H1

The country enjoyed a higher surplus in its current account in the first half due to a recovery in export earnings and sustained rise in remittances.

The current account surplus reached $3.7 billion in the first half of 2012, up by 32 percent from the $2.8 billion registered in the same period last year, the Bangko Sentral ng Pilipinas reported on Friday.

Current account is one of the two main components of the country’s balance of payments (BOP). It is the difference between the inflows and outflows of foreign currencies to and from the country arising mainly from the trade of goods and services, as well as remittances and other cash transfers.

“The current account registered a higher surplus in the first six months due to the reduction of the trade-in-goods deficit combined with increased surpluses in the current transfers and services accounts,” the central bank said in a report.

Although the global economy is still struggling with the crisis in the euro zone and the sluggish growth of the US economy, Philippine exports have improved this year.

BSP Assistant Governor Ma. Cyd Tuano-Amador said exports managed to grow by 8 percent to $26.4 billion in the first half mainly because of efforts of industry players to diversify both their goods and their export markets.

The United States and the euro zone continue to be two of the biggest export markets for Philippine goods.

But government officials said the share of the Western economies to the Philippines’ export earnings has been dwindling.

This is partly because Filipino exporters are selling more and more goods to alternative markets, officials said.

The BSP earlier reported that remittances from overseas-based Filipinos reached $10.13 billion in the first half, up by 5.1 percent year-on-year.