BOP surplus hits $5.085 B in 2013

MANILA, Philippines - The country’s balance of payments position remained in surplus last year, despite being 45 percent below the level in 2012, the Bangko Sentral ng Pilipinas reported yesterday.

The country recorded a BOP surplus of $5.085 billion last year, down from the $9.236-billion surplus recorded in 2012.

The figure was also lower than the central bank’s assumption of $5.3 billion.

The BOP shows a summary of a country’s transactions with the rest of the world. Its components include trade, foreign direct and portfolio investments, and even remittances from overseas Filipinos.

A surplus means more money went into the economy during the period, while a deficit means otherwise.

Foreign direct investments jumped 35 percent to $3.361 billion as of October last year, while net hot money inflow rose eight percent to $4.224 billion in end-2013.

Money sent home by Filipinos living and working abroad, meanwhile, increased  6.1 percent to $20.605 billion as of November last year.

The country also saw the value of its merchandise exports climb 2.6 percent to $49.376 billion as of November last year, while imports summed up to $46.359 as of September.

Data from the BSP showed the BOP position has been falling since it peaked at a surplus of $14.308 billion in 2010.

However, the Philippines has continued to see a surplus after its last deficit recorded in 2004 which indicates it has more funds to grow its international reserves which serve as buffer against external shocks.