Philippine bank forecasts larger deficit in 2024-2025 due to geopolitical and trade policy factors.

The Philippine central bank forecasts a widened current account deficit of $10.4 billion (2.2% of GDP) for 2024, up from a previous $6.8 billion projection, due to geopolitical shocks and potential shifts in US trade policies. For 2025, the deficit is projected to grow further to $12.1 billion (2.4% of GDP). Despite these increases, the balance of payments (BOP) is expected to remain in surplus, bolstered by strong financial inflows.

3 months ago
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