Current account surplus climbs 15% to $3 B in Q3

MANILA, Philippines - The country’s current account surplus climbed 15 percent in the third quarter as the rise in exports outpaced the increase in imports, the Bangko Sentral ng Pilipinas reported.

The surplus summed up to $3.037 billion in July to September, higher than the $2.647 billion recorded in the same period last year. The level is equivalent to 4.4 percent of the country’s gross domestic product.

“The higher current account surplus was due to the narrowing of the trade-in-goods deficit and the continued increase in net receipts in secondary income, which more than offset the decrease in net receipts in trade-in-services and primary income,” the central bank said.

The trade-in-goods deficit amounted to $4.4 billion in the third quarter, down from $5.2 billion in the same period last year.

“The narrowing of the trade-in-goods balance during the quarter reflected improving external demand as overall global growth dynamics are seen to remain broadly favorable,” the central bank said.

The services account during the period, meanwhile, summed up to a surplus of $1.5 billion in the third quarter, lower than the $2.3 billion seen in the same period last year on increased net payments for transport and travel services.

Looking at the primary account, the BSP said net receipts of $247 million was recorded during the period, while a $5.7 billion in net receipts was seen for the secondary income account.

In the nine months to September, the current account surplus slid to $6.8 billion from $7 billion on a lower trade-in-goods surplus.

The figure brought the balance of payments position to a deficit of $3.4 billion as of September, a reversal of the $3.8-billion surplus in the same period last year.

The BSP has forecast the current account to register a surplus of $6.6 billion this year, while the BOP position is seen ending in a deficit of $3.4 billion.