Narrower $373-M BOP gap is ‘growth-related’
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HE Philippines’s balance of payments (BOP), a measure of the country’s cash flow statement with the rest of the world, may have continued to “stay in the red” at the start of 2026 due to seasonally strong import payments, but the narrower gap can be attributed to improved external buffers. Latest data from the Bangko Sentral ng Pilipinas (BSP) showed the country’s balance of payments registered a deficit of US$373 million in January 2026. That BOP deficit in the first month of the year is 90.85 percent narrower than the $4.078-billion deficit posted in January 2025, and leaner by 54.90 percent than the $827-million deficit in December 2025. Jonathan Ravelas, senior adviser at Reyes
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Tacandong & Co. said “The BOP is still in deficit mainly because imports are outpacing exports.” This, Ravelas explained, reflects strong domestic demand and infrastructure spending, while global demand for the country’s exports and services like BPO and tourism has been “softer.” Despite this, he pointed out that the BOP gap in January isn’t a “crisis signal.” Instead, he described it as a “growth-related deficit.” Further, Ravelas said the country’s external buffers “remain solid.” Latest BSP data showed the gross international reserves (GIR) increased to US$112.6 billion as of end-January 2026. BSP said this level of reserves remains an adequate external liquidity buffer, equivalent to 7.5 months’
worth of imports of goods and payments of services and primary income. “It covers about 4.1 times the country’s short-term external debt based on residual maturity,” added BSP. (See:https://businessmirror.com.ph/2026/02/09/janusd-reserves-seen-shielding-phl-fromshocks/) In the view of Robert Dan Roces, Group Economist at SM Investments Corp., the deficit “largely reflects seasonally strong import payments and profit remittances at the start of the year, alongside some portfolio repositioning amid global rate uncertainty.” Explaining the narrower gap compared to December 2025, Roces said this could “suggest external pressures have eased somewhat rather than worsened.”
John Paolo Rivera, Senior Research Fellow at the Philippine Institute for Development Studies (PIDS), said the reduced gap reflects “improved external buffers” at the start of 2026, supported by sustained remittance inflows, steady services exports such as IT-BPM and tourism receipts, and “moderating” import growth after the holiday surge. “Seasonal factors also played a role, as January typically sees fewer import payments compared with the year-end peak,” added Rivera. Moreover, he said the “significantly” smaller deficit compared with 2025 suggests “a more stable external position and better balance between USD inflows and outflows.” For his part, Michael L. Ricafort, chief See “BOP,” A2
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Friday, February 20, 2026 Vol. 21 No. 131
P25.00 nationwide | 2 sections 24 pages | 7 DAYS A WEEK
TOP OF THE MORNING Visitors pause to absorb the sweeping mountain-and-sea panorama at Top Allan, a vast hilltop nature park in Barangay Up-uplas, Sudipen, La Union. Perched above rolling terrain with commanding views of the coastline, the emerging eco-destination is among the newest attractions being promoted in the province’s 1st District. At Top Allan, guests rise early for a dramatic sunrise that bathes the landscape in gold, wander through manicured gardens with family and barkadas, and reconnect with nature amid cool highland air—capped by the steady, calming “Elyu” breeze that has long defined La Union’s charm. MAU VICTA
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By Andrea E. San Juan @andreasanjuan
HE Bangko Sentral ng Pilipinas (BSP) admitted that it has become “less certain” of the direction of the economy in the next quarter given the sliding confidence which dragged the pace of growth of the Philippine economy last year. The BSP Monetary Board announced Thursday that it has reduced the Target Reverse Repurchase (RRP) Rate by 25 basis points to 4.25 percent. The interest rates on the overnight deposit and lending facilities were adjusted to 3.75 percent and 4.75 percent, respectively. The central bank has cut rates nine times since August 2024, for a total 225 basis points (bps)—thus reducing the policy rate from 6.50 percent to 4.25 percent.
“Economic growth has undershot the BSP’s expectations due to weaker domestic demand. Latest indicators point to a recovery in the second half of the year, but growth will depend largely on how quickly confidence recovers,” the central bank said in a statement on Thursday. BSP Governor and MB Chairman Eli M. Remolona Jr. said: “Growth has been softer than expected. Investments slowed. We attribute this See “Rate cut,” A2
MARINA, IMO TACKLE MARITIME ISSUES; LOCSIN FLAGS THREATS By Lorenz S. Marasigan
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HE Maritime Industry Authority (Marina) and the International Maritime Organization (IMO) moved to strengthen cooperation on key maritime issues during a high-level visit to Manila this week. Marina Administrator Sonia Malaluan said both sides exchanged views and best practices on seafarer training standards, green shipping targets, and emerging technologies reshaping the industry. During his visit to Manila, IMO Secretary-General Arsenio Dominguez discussed
a range of concerns including safety oversight of domestic fleets, the organization’s netzero greenhouse gas reduction checkpoints, maritime autonomous surface ships, and efforts to address bullying and harassment aboard international vessels. There, he emphasized the need for seafarers to embrace emerging technologies to boost operational efficiency while urging the maritime community—particularly its younger members—to contribute ideas as the sector evolves. “I need your advice and I See “Threats,” A2
Luxury Manila hotels shine in Forbes awards By Ma. Stella F. Arnaldo Special to the BusinessMirror
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LEVEN hospitality establishments in the country earned their places on this year’s edition of the Forbes Travel Guide Star Awards. All are located in Metro Manila. Rated five stars anew are: Nüwa Manila at City of Dreams and its Nüwa Spa, Okada Manila and its Retreat Spa, The Peninsula Manila, and Skytower at Solaire Resort Entertainment City. “Five-Star properties deliver an outstanding experience and consistently offer a highly customized level of service,” explained FTG. Properties which have maintained their four-star rating are:
Fairmont Makati, Hyatt Regency City of Dreams, Marco Polo Ortigas, Nobu Hotel Manila, Raffles Makati, Shangri-La at The Fort Manila. A new entry for the year is Solaire Resort North. “Four-Star properties are exceptional, offering high levels of service and quality of facility to match.” Forbes Travel Guide (FTG) also recommends a stay at Conrad Manila and Makati Shangri-La Manila. “These are excellent properties with consistently good service and facilities,” said the Guide.
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THESE hotels were among the 2,420 around the world on the FTG list of Star winners and recommended See “Forbes,” A3
PESO EXCHANGE RATES n US 57.9420 n JAPAN 0.3742 n UK 78.2159 n HK 7.4151 n CHINA 8.3934 n SINGAPORE 45.7425 n AUSTRALIA 40.7970 n EU 68.2846 n KOREA 0.0402 n SAUDI ARABIA 15.4499 Source: BSP (February 19, 2026)