Philippines reports $1.47 billion balance of payments deficit in July

The Philippines recorded a $1.47 billion deficit in its balance of payments (BoP) for July 2026, according to the Bangko Sentral ng Pilipinas (BSP). This marks a significant reversal from the $3.403 billion surplus reported in June and is the first monthly deficit since April. The central bank attributed the gap to a persistent trade-in-goods deficit, net outflows from foreign portfolio investments, and higher foreign exchange outflows related to external debt payments.

Simultaneously, the BSP faces pressure regarding monetary policy. Economists surveyed suggest the central bank is likely to implement a quarter-point interest rate hike at its upcoming meeting to combat persistent inflation and peso weakness. While inflation eased to 6.2 percent in July, it remains above the 3 percent target. The decision comes as the country balances inflation risks—driven by food, energy, and volatile oil prices—against slowing economic growth, which fell to 2.3 percent in the second quarter.