MANILA — The Philippines’ balance of payments (BOP) recorded a deficit of US$827 million in December 2025, bringing the full-year outcome to a US$5.7 billion deficit, according to data from the Bangko Sentral ng Pilipinas (BSP).

Despite the deficit, the country’s gross international reserves (GIR) remained strong at US$110.8 billion as of the end of December 2025. BSP noted that this level of reserves continues to provide an adequate external liquidity buffer, equivalent to 7.4 months’ worth of imports of goods and payments of services and primary income.

The reserves cover about 3.9 times the country’s short-term external debt based on residual maturity, providing a cushion against external shocks.

The BOP tracks transactions between the Philippines and the rest of the world, while GIR consists of foreign-denominated securities, foreign exchange, and other assets, including gold. According to the BSP, the reserves help ensure sufficient dollar liquidity to meet import needs, settle foreign debt obligations, address currency volatility, and provide a buffer against external economic shocks.