THE Philippines recorded a balance of payments (BOP) deficit of $2.12 billion in April 2026, which widened the cumulative shortfall in the first four months of the year to $7.41 billion, according to data released by the Bangko Sentral ng Pilipinas on Tuesday.
The April deficit narrowed from the $2.56-billion gap reported in the same period last year and improved from the $2.64-billion shortfall seen in March. The BOP measures the overall economic transactions of the country with the rest of the world.
Union Bank of the Philippines chief economist Ruben Carlo Asuncion said the narrower April deficit pointed to some normalization after earlier capital outflows.
“The narrower BOP deficit in April reflects some normalization after earlier outflows, but the wider year-to-date gap highlights persistent external pressures, particularly from the country’s large trade deficit amid strong import demand and softer exports,” Asuncion said.
Asuncion said remittances and services supported the external position of the country, but these inflows fell short of fully offsetting the current account deficit, particularly as capital flows remain vulnerable to global market conditions.
“Moving forward, the BOP is likely to stay under pressure, although we may see some moderation in the coming months as inflows stabilize and seasonal [foreign exchange] receipts improve,” Asuncion said.
Gross international reserves (GIR) settled at $104.33 billion as of end-April, down from $105.31 billion recorded a year earlier.
The BSP said the reserve level serves as a robust external liquidity buffer equivalent to 6.9 months of imports of goods, service payments and primary income. The reserves also cover about 3.8 times the short-term external debt of the country based on residual maturity.
The GIR consists of foreign-denominated securities, foreign exchange holdings, gold and other assets. These reserves ensure sufficient dollar liquidity for import needs and foreign debt obligations, address currency volatility and buffer against external economic shocks. Analysts consider reserves adequate if they can finance at least three months of imports.
