Philippine Feb balance of payments surplus remains positive

The Philippines' balance of payments (BoP) surplus narrowed to 104 million U.S. dollars in February from 1.925 billion U.S. dollars in January as the country began servicing maturing debts, a Central Bank report said on Thursday.

However, despite the payments, the surplus for the first two months of the year stood at a healthy level of 2.029 billion U.S. dollars, nearly three times the 685 million U.S. dollars posted same period last year, according to the report.

The Central Bank said the country's BoP position was boosted by hefty inflows from portfolio investments and remittances, as well the government's increased deposits with the Central Bank.

Central Bank officials said investors' sentiment remained positive owing to the government's success in fiscal reform implementation.

Meanwhile, remittances coursed through banks surged more than 16 percent in January to 917 million U.S. dollars driven by the Bank's aggressive marketing efforts and the overseas Filipino workers' stepped up buying of real estate properties in the country.

With prospects of higher inflows, Central Bank officials said the BoP surplus this year may easily hit over 1 billion U.S. dollars, exceeding official forecasts of 900 million U.S. dollars.

For this year, the Central Bank forecasts a surplus in the current account, the aggregate balance of goods, services, income and current transfers, amounting to 2.5 billion U.S. dollars.

The Central Bank also expects a surplus in the capital and financial account, which include capital transfers and foreign investments.

Source: Xinhua