"I think we will end up with $200-$300 million BOP negative (deficit) versus the original estimate of $2.3 billion deficit," Bangko Sentral ng Pilipinas (BSP) Governor Rafael B. Buenaventura said yesterday.
"The surplus position of BOP in November and mostly likely in December reflected the positive view on the Philippines," he said, referring to various foreign loans obtained by the government and the central bank in the last two months of 2001.
"The fact that we were able to have access to the debt market after the Sept. 11 attacks reflected the positive view of the Philippines and the government’s good, sound macroeconomic fundamentals," Buenaventura said.
For the first 11 months of 2001, inflows from investments and bond borrowings trimmed the country’s BOP deficit to $1.065 billion, but this was still higher than the previous year’s level of $918 million.
In November alone, the country recorded a BOP surplus of $451 million.
At the same time, inflows of foreign direct investments continued, with new inflows totaling $1.6 billion.
The bulk of direct investments came from the US, Japan, France and Singapore and was channeled primarily to the manufacturing and telecommunication sectors as well as financial institutions.
According to the BSP, inflows from investments and bond borrowings of the government trimmed the 11-month deficit but the latest figure was still higher than the previous year’s level of $918 million.
The BOP account represents the country’s total financial transactions with the rest of the world. It is made up of capital and financial account representing direct portfolio investments, and the current account, representing trade in goods and services with other countries.