The Philippines recorded a $5.66-billion balance of payments deficit in 2025 as softer financial account inflows outweighed improvements in the country’s trade performance, the Bangko Sentral ng Pilipinas said over the weekend.
The full-year position reversed the $609-million surplus seen in 2024 and was equivalent to 1.2 percent of gross domestic product.
BSP officials attributed the shift largely to weaker financial account inflows amid tighter global financial conditions, even as narrower trade gaps and external receipts cushioned the impact.
“Net inflows in the financial account declined as residents increased their investments in foreign-issued debt securities, while foreign loan availments by domestic banks and net inflows of foreign direct investments also moderated. These factors tempered overall external financing and contributed to the weaker financial account position for the year,” the BSP said in a statement.
Despite the overall deficit, the current account gap narrowed to $16.3 billion from $18.6 billion in 2024.
The BSP said the improvement was driven by robust export growth and higher income from overseas Filipino remittances, which continued to support household consumption.
The business process outsourcing sector remained a reliable source of earnings, according to the bank.
“The business process outsourcing sector remained a reliable source of services export earnings, with sustained industry expansion and firm global demand for digital and outsourcing services helping offset softer receipts in other services segments during the year,” the BSP said.
