BSP sees better external sector prospects

The Bangko Sentral ng Pilipinas (BSP) sees better external sector prospects for the next two years as it projects a higher balance of payments (BOP) surplus and a narrower current account (CA) deficit.

- KEISHA TA-ASAN

In an online press briefing, Sittie Hannisha Butocan, director of the BSP’s Department of Economic Research, said the Monetary Board raised the country’s BOP surplus forecast to $1.6 billion (0.3 percent of gross domestic product) for this year from the original target of $700 million (0.1 percent of GDP).

For next year, Butocan said the projected BOP surplus now stands at $1.5 billion (0.3 percent of GDP), a turnaround from the $500-million deficit (-0.1 percent of GDP) previously given in the first quarter.

The change in BOP forecasts for 2024 and 2025 was mainly due to the narrower current account balance for the next two years, she said.

The BSP lowered its current account deficit target for 2024 to $4.7 billion (-1 percent of GDP) from the previous forecast of $6.1 billion (-1.3 percent of GDP) and to $2 billion (-0.4 percent of GDP) for 2025 from the original target of $5.8 billion (-1.1 percent of GDP).

The BOP is the difference in total values between payments into and out of the country over a period.