Philippine central bank revises 2023 current account projection

THE Philippine central bank said on Friday (Mar 17) it expects a current account deficit of US$17.1 billion for 2023, equivalent to 4 per cent of gross domestic product (GDP), taking into account subdued global and domestic economic activity.

The figure is narrower than its previous projection of a US$19.9 billion deficit, or 4.7 per cent of GDP.

The Bangko Sentral ng Pilipinas (BSP) also revised its projection for the 2023 balance of payments deficit to US$1.6 billion, or 0.4 per cent of GDP, from US$5.4 billion, or 1.3 per cent of GDP.

For 2024, the BSP projected a current account deficit of US$16.8 billion, or 3.4 per cent of GDP, while the BOP is seen at a deficit of US$0.5 billion, or 0.1 per cent of GDP.

Remittances are seen to grow by 3 per cent this year and next.

Gross international reserves are projected to pick up to US$100 billion this year, from a previous forecast of US$93 billion, and to US$102 billion at end-2024. REUTERS