Phl Current Account Deficit Seen Rising in Next 2 Years

Nomura Global Markets Research has raised its current account deficit (CAD) forecast for the Philippines over the next two years, citing external pressures expected to weigh on the country's economy.

- Keisha Ta-asan

In a report, Nomura economists Euben Paracuelles and Nabila Amani said that they had revised their 2024 and 2025 CAD forecasts to -2.9 percent (from the original target of -2.3 percent) and to -3.1 percent (from -2.5 percent), respectively.

"We continue to expect the CAD to rise, given the mix of improving domestic demand with higher external pressures. Our CAD forecast revisions take into account a higher-than-expected outturn in the third quarter," they said.

Based on data from the Bangko Sentral ng Pilipinas (BSP), the country's CAD widened to $5.7 billion in the third quarter of 2024, more than double the $2.2 billion shortfall in the same quarter a year ago.