ASEAN KEY DESTINATIONS
PHL to post wider current account deficit in 2018
The Philippine current account is projected to post a wider deficit this year due to an increasing trade gap, the Bangko Sentral ng Pilipinas (BSP) said Thursday.
Data released by the central bank showed the current account is likely to post a deficit of $3.1 billion this year, compared with $2.5 billion last year.
“This mainly reflects the projected wider trade deficit as growth in goods imports largely outpaces exports growth,” the central bank said.
The Philippine Statistics Authority has reported that the trade deficit widened by more than 130 percent in April.
Shipments of imported goods are anticipated to gain further traction this year, following the momentum in the fourth quarter of 2017, the central bank said
“It is expected to grow robustly by 11.0 percent, slightly increased from the December 2017 projection of 10.0 percent,” it said.
Foreign direct investments are expected to reach $9.2 billion for the full-year, down from $10.049 billion in net inflows last year.
In terms of the balance of payments, the BSP now expects a deficit of $1.5 billion from an earlier projection of $1 billion.
The central bank said the gross international reserves position will likely settle at $80 billion for the year, from $81.5 billion as of end-December 2017.
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