According to an official data issued on Monday, the balance of payments (BOP) figure of Philippines have hit a surplus of $6.43 billion in the first 10 months from January to October. This figure is two and a half times greater than the official forecast. The surplus in BOP in the month of October itself was $604 million - almost three times the total $208 million surplus reported during 2011.
Diwa C. Guinigundo, Deputy Governor of Central Bank, said that it is the current account surplus in BOP since the year 2003 that has driven this extraordinary performance. Tourist receipts, exports, remittances, and POB revenues have further fueled the surplus in current account. By the end of 2012 it is expected that the Balance of Payments sector of Philippines will even surpass $11 billion revenues of the last year, pulling up the figure to a $ 12 billion or more.
From the month of January to October, 2012, the earnings of about 10 million overseas Filipinos have already surpassed $17 billion in these nine months. The yearly earnings for the year 2012 are forecasted to exceed a dramatic $22 billion. On the other hand, receipt from export has increased by 7.2 percent to $40.7 billion in the first nine months of the year, reported the Central Bank. The 10 months of surplus in Balance of Payments have surpassed the forecasted surplus, which was under $3 billion for 2012.
The BOP surplus, for January to October, of more than $6 billion is unexpectedly higher than old Balance of Payment surplus forecast of only $3 billion for 2012. The Central Bank has reviewed the older BOP surplus projections and will announce a new set of forecasts for Philippines’ BOP by ‘early next week at the latest,’ reported Guinigundo. This astounding performance in Balance of Payment surplus is the result of current account surplus accumulation since the year 2003.
In addition to this, remittances, POB revenues, export revenues, and tourist receipts have further boosted the current account surplus, which has resulted into such significant BOP surplus within the first nine months of the year.
The total BOP earning is expected to even outperform a dramatic $11 billion of the last year, taking its position somewhere more than $12 billion by the end of this year. The Philippines financial sector is expecting that BOP earnings in addition to earnings from overseas Filipinos and will increase substantially in the years to come.
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Edited by Amanda Ciccatelli