BSP sees narrower 2024 current account deficit

December 15, 2023 - 2:47 PM
Bangko Sentral ng Pilipinas (Philstar file photo)

— The Philippines‘ current account deficit is expected to narrow to $9.5 billion, or 2.0% of gross domestic product (GDP) in 2024 from the projected deficit of $11.2 billion, or 2.5% of GDP, this year, the central bank said on Friday.

The Bangko Sentral ng Pilipinas’ (BSP) previous forecast for 2024 current account balance was at $10.3 billion deficit, equivalent to 2.1% of GDP.

It expects a balance of payments (BOP) surplus of $0.4 billion, or 0.1% of GDP next year, smaller than the $1 billion surplus, 0.2% of GDP, earlier projected. For 2023, the BOP surplus is expected at $1.1 billion, or 0.2% of GDP.

“The current account is projected to remain in deficit for 2023, but with prospects of narrowing in 2024,” the BSP said in a statement, owing to a rebound in trade activity.

Steady inflows of overseas Filipino remittances, seen growing at 3.0% in 2024, will likewise help narrow current account gap, it added.

– Reporting by Neil Jerome Morales and Karen Lema; Editing by Kanupriya Kapoor