THE Bangko Sentral ng Pilipinas (BSP) said that the country's balance of payments (BOP) position swung to a surplus in 2023 from a deficit in 2022.

According to the BSP, the BOP consists of Philippine transactions with relation to the rest of the world for a specific period. 

A country with a surplus means that there will be more funds entered the country.

A deficit on the other hand meant more funds left.

Currently, the Philippines’ BOP position for 2023 has a surplus of $3.672 billion.

This is a sharp reversal from a deficit of $7.263 billion in 2022.

“Based on preliminary data, this development reflected mainly the improvement in the balance of trade alongside the higher net inflows from personal remittances, trade in services, and foreign borrowings by the national government,” the BSP said.

“Further, net inflows from foreign direct investments contributed to the surplus, albeit lower during the period,” it added.

But for Rizal Commercial Banking Corp. chief economist Michael Ricafort, the  country’s BOP position was likely supported “by the continued growth in the country’s structural US dollar inflows such as OFW remittances, BPO revenues, exports, foreign investments, and foreign tourism revenues, among others.”