More dollars flowed out of PH in 2022 on import spending

The Philippines overall balance of payments position (BOP) in 2022 settled at a deficit of $7.3 billion, reversing from a surplus of $1.34 billion in 2021, according to the Bangko Sentral ng Pilipinas (BSP).

At the same time, the BSPs gross international reserves (GIR) as of the end of December increased by a slightly larger amount than previously thought, reaching $96.1 billion instead of just $96 billion as preliminary data that was available earlier this month suggested.

Based on preliminary data, this cumulative [full-year] BOP deficit was due to the widening trade in goods deficit as goods imports continued to surpass goods exports on the back of the increase in international commodity prices and resumption in domestic economic activities, the BSP said in a statement.

In December alone, the countrys transactions with the rest of the world tallied at a surplus of $621 million, which meant a drop of 33 percent from the $911 million recorded in the same month of 2021.

Surplus in December

The BOP surplus in December 2022 reflected inflows arising mainly from the [BSPs] net foreign exchange operations and net income from its investments abroad, the central bank said.