The Philippines’ balance of payments (BOP) position narrowed sharply to an $82-million surplus in September from a $3.53-billion surplus in the same month last year, leading to a massive cumulative deficit over the first nine months of 2025.

The latest data from the Bangko Sentral ng Pilipinas (BSP) on Monday, Oct. 20, showed that the surplus in the BOP, which reflects the country’s transactions with the rest of the world, dropped by 97.7 percent in September compared to a year ago.

As per the BSP, the BOP surplus reflected the central bank’s net earnings from its investments abroad and the national government’s net foreign currency deposits with the central bank.

This pushed the year-to-date BOP position to swing from a $5.12-billion surplus at end-September last year to a $5.32-billion deficit. However, it eased from the $5.4-billion deficit at end-August.

According to the BSP, the BOP position mirrored the increase in gross international reserves (GIR), or the country’s United States (US) dollar stock, from $107.1 billion at end-August to $109.1 billion as of end-September.

“The level of GIR remains an adequate external liquidity buffer, equivalent to 7.3 months’ worth of imports of goods and payments of services and primary income,” the BSP said.

It also covers about 3.8 times the country’s short-term foreign debt based on residual maturity.

Short-term debt based on residual maturity includes all foreign debt originally due in one year or less, along with upcoming principal payments on medium-term and long-term loans from both the public and private sectors that are set to mature within the next 12 months.

SM Investments Corp. (SMIC) chief economist Robert Dan Roces said the narrower BOP surplus in the month of September reflects “fewer one-off inflows and a still-wide trade gap.” He noted, however, that the country’s external position “remains manageable with steady remittances, strong services exports, and solid reserves.”

“As global rates ease and regional demand recovers, investment inflows may return and support liquidity and credit conditions, which should help firms with deep local roots and diverse sources of growth,” said Roces.