MANILA (Reuters) – The Central Bank of the Philippines on Friday raised its 2022 and 2022 forecasts for the country’s current account deficit, citing Global economic growth slowed as inflation and interest rates climbed.
The Central Bank of the Philippines (BSP) now expects a current account balance of $2023 deficit of $600 million this year, representing a 5.0% of GDP, compared with a previous forecast of 19 $100 million, or 4.6% of GDP. GDP.
For 2023, the deficit is $100 million, equivalent to 4.5 percent of GDP percentage of value. This compares to the previous forecast of 20 $500 million, or 4.4% of GDP.
This year’s balance of payments (BOP) deficit is projected at $8.4 billion, or 2 percent of GDP, up from a previous estimate of $6.3 billion, or 1.5 percent of GDP.
Next year’s balance of payments is projected to show a deficit of $2.5 billion, or 0.6% of GDP, compared to the previous forecast of a deficit of $2.6 billion, or 0.6% of GDP.
“These risks to a further downward revision to the global growth outlook…are expected to broadly weaken global demand conditions, thereby weakening the country’s external sector,” the BSP said in a statement. .
BSP lowered its forecast for total international reserves at the end of the year from 99 $1 billion to 99 Billion before, and 2023 Billion, from 99 Billion.
However, it said the country’s “robust” macroeconomic fundamentals could offset external headwinds, citing a strong recovery in the first half driven by Covid-19 relief – 20 to limit and expand vaccination coverage.
The inflow of overseas Filipinos such as remittances and business processes is expected to provide additional support for outsourcing income, it said.
BSP expects remittances to grow by 4% this year and next.