Philippine central bank sees narrower 2024, 2025 current account deficits

MANILA (Reuters): The Philippine central bank has announced that it expects the current account deficit to be smaller than previously forecast in 2024 and 2025, due to a narrowing trade gap and sustained dollar flows from overseas Filipinos and the outsourcing sector.

The current account deficit for 2024 is now forecast at $4.7 billion, equal to 1.0% of gross domestic product (GDP), from the previous projection of a $6.1 billion gap, or 1.3% of GDP, the Bangko Sentral ng Pilipinas (BSP) said.

For 2025, the current account deficit is seen at $2 billion, or 0.4% of GDP, compared with an earlier estimate of a $5.8 billion deficit, equivalent to 1.1% of GDP.

The central bank expects a balance of payments (BOP) surplus of $1.6 billion, or 0.3% of GDP for 2024, larger than its previous forecast of a $700 million surplus, or 0.1% of GDP.

For 2025, the BOP is now seen posting a surplus of $1.5 billion, or 0.3% of GDP, a marked turnaround from a previous forecast of a deficit of $0.5 billion, or 0.1% of GDP.

The BSP said a pick-up in global economic activity, easing domestic inflation and forecast growth of 3% in remittances from overseas Filipino remittances were factors in revised forecasts.

Remittances from millions of Filipinos living and working abroad will help the Southeast Asian nation record end-2024 gross international reserves of $104 billion in 2024 and $105 billion in 2025, the central bank said.

(Reporting by Neil Jerome Morales and Mikhail Flores; editing by John Mair) - Reuters

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Aseanplus News

Asean news headlines as at 10pm on Friday (July 19)
Cebu Pacific, AirAsia hit by Microsoft global outage
K-drama star Lee Joon Gi in KL this September
Chinese envoy celebrates opening of Jinping Boulevard, highlights strong Sino-Cambodian ties
'I'm a guy, I'm an idiot': Harith Iskander blames himself for pending divorce
Myanmar marks 77th anniversary of the assassination of independence hero Gen Aung San
High Court rejects Iswaran’s bid for prosecution to provide statements of witnesses; trial set for Aug 13
Microsoft outage hits some Philippine banks
Bakong mobile payment system to facilitate international tourist spending
Microsoft system disruption causes flight check-in delays in Vietnam

Others Also Read