Balance of payments deficit narrows in Nov

THE country’s November balance of of $44 million, the Bangko Sentral ng Pilipinas (BSP) reported late on Tuesday, smaller than the $368-million and $1.67-billion shortfalls recorded in October and a year earlier.

“Outflows in November 2017 stemmed mainly from payments made by the national government for its maturing foreign exchange obliga- tions during the month in review,” the central bank said in a statement, adding that these were partially offset by government net foreign currency deposits and income from the BSP’s investments abroad.

The November result brought the year-to-date BoP position to a $206 million recorded in the same period last year.

for January to November 2017 was brought about largely by the big reversal in foreign portfolio investments, 10 months of the year,” the central bank said.

The BSP last week revised its BoP billion from the previous forecast of $500 million.

Key considerations behind the projection are an expected pickup in global growth, a modest recovery in global trade, measured US monetary policy normalization, a brighter outlook for emerging market capital flows, moderate increases in commodity prices, and robust domestic growth.

IHS Markit chief economist Ra could even top the Bangko Sentral’s revised forecast.

“With domestic demand expected to grow strongly in 2018 and likely to boost imports of capital goods, the BoP deficit could widen further in 2018, continuing to be a negative factor for the near-term Philippine peso outlook,” he added.