BSP Sees Wider BOP Deficit

The Bangko Sentral ng Pilipinas (BSP) has revised its balance of payments (BOP) forecast this year amid heightened global economic uncertainty, weaker trade growth and subdued investor confidence.

- By KEISHA TA-ASAN

As of the first quarter, the overall BOP is expected to shift to a deficit of $4 billion this year, a reversal of the $2.1-billion surplus forecasted a quarter ago and a significant drop from the $609 million actual surplus in 2024.

"The Philippine BOP position is projected to be weaker in 2025 to 2026 due to slower global trade and subdued investor confidence linked to increased uncertainty in global trade policy and geopolitical developments," the central bank said.

The current account deficit is now expected to widen to $19.8 billion or 3.9 percent of gross domestic product this year, a downgrade from the previously projected $12.1 billion deficit and significantly higher than the $17.5 billion shortfall in 2024.