The Philippines posted a $373 million balance of payments (BOP) deficit in January 2026, narrower than the $827 million shortfall in December and the $4.078 billion deficit recorded a year earlier, the Bangko Sentral ng Pilipinas (BSP) reported Thursday.
The BOP measures a country’s total transactions with the rest of the world over a given period.
Gross international reserves (GIR) increased to $112.6 billion in January, sufficient to cover 7.5 months of imports of goods and payments for services, the BSP said.
This exceeds the international benchmark of three to four months of import cover.
Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said the deficit resulted from imports outpacing exports.
“That reflects strong domestic demand and infrastructure spending, while global demand for our exports — and services like BPO (business process outsourcing) and tourism — has been softer,” he said.
Ravelas added that the latest figure “isn’t a crisis signal; it’s a growth-related deficit, and our external buffers remain solid.”
“Looking ahead, the BOP will likely stay in the red in the near term but should stabilize as exports recover, tourism picks up, and investment reforms gain traction. The key now is to boost export competitiveness and attract more long-term investments, rather than overreacting to the headline number,” he said.
Rizal Commercial Banking Corporation chief economist Michael Ricafort attributed the narrower deficit partly to the “proceeds of the $2.75 billion Philippine government global bond/ROP (Republic of the Philippines) bond issuance that was settled on January 27, 2026.”
“For the coming months, BOP data would improve further if anti-corruption measures and other reform measures, especially in further leveling up the country’s governance standards, are taken seriously, just like 10-15 years ago, as these help further improve international investor sentiment/confidence on the country that would increase foreign investment inflows into the country,” he said.
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