The Philippines recorded a $5.3-billion balance of payments (BOP) deficit in the first nine months of 2025, equivalent to 1.5 percent of the gross domestic product (GDP), the Bangko Sentral ng Pilipinas (BSP) said Friday.
The deficit was led by a substantial current account shortfall amid tighter global financial conditions and persistent trade uncertainties.
The current account posted a deficit of $12.5 billion, or 3.6 percent of GDP, stemming largely from a wider trade in goods gap as imports outweighed exports.
Imports were bolstered by strong domestic demand for telecommunications equipment, electrical machinery and passenger vehicles. However, exports showed resilience due to robust global demand for manufactured goods, minerals and electronics.
Partially offsetting the current account deficit, the financial account recorded a net inflow of $12.2 billion, equivalent to 3.5 percent of GDP.
This reflected continued investor interest and steady capital inflows, primarily driven by sustained foreign direct and portfolio investments, along with foreign borrowings undertaken by the National Government.
Inflows from income accounts—notably remittances from overseas Filipinos and receipts from the business process outsourcing (BPO) sector and travel services—continued to provide a buffer to the country’s external position.
The BOP is composed of the current account, financial account and capital account.
The current account tracks trade in goods and services, as well as primary and secondary income. The financial account logs investments and loans, and the capital account includes grants and one-time transfers.
