Saturday, 19 November 2011

BoP Surplus Reaches $9.93 Billion

Cumulative For First 10 Months
Manila Bulletin

MANILA, Philippines — The Philippines’ balance of payments (BoP) surplus was $9.929 billion in the first 10 months of the year due to inflows from portfolio investments, exports and remittances, the Bangko Sentral ng Pilipinas (BSP) reported.

Data released by the central bank yesterday showed that the country’s BoP from January to October this year was $750 million higher compared with $9.179-billion surplus incurred in the same period last year.

The BoP is a summary of the economic transactions of a country with the rest of the world for a specific time period.

In October alone, the BoP surplus reached $208 million, lower compared with P2.736-billion surplus The central bank is currently reviewing its 2011 BoP surplus forecast of $6.7 billion and may revise it upwards after the figure was exceeded starting August.

Last year, the BoP posted a record surplus of $14.4 billion on the back of strong remittances of overseas Filipinos, high earnings of the business process outsourcing (BPO) sector, sustained export growth as well as surging foreign capital flows.

Net portfolio inflows in the 10 months to October reached $3.445 billion compared with last year's $2.509 billion.

The central bank has said it may keep its 7 percent remittance growth forecast for the year, despite the slowing US economy and euro zone's debt problems.

The BSP earlier reported that remittances from overseas Filipinos remained robust in September this year at $1.7 billion, registering an 8.4 percent year-on-year increment.

“The steady growth in remittance flows through September this year resulted in a cumulative year-on-year expansion of 7.1 percent to reach $14.8 billion,” BSP Governor Amando M. Tetangco Jr. said.

For the nine-month period, the top ten country sources of remittances included the US, Canada, Saudi Arabia, the UK, Japan, United Arab Emirates, Singapore, Italy, Germany and Norway.

The remittance flows from these countries amounted to $12.5 billion, which represented 84.9 percent of total remittances reported by banks.

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