Bangko Sentral raises forecast for current account surplus

Reuters

Posted at Mar 18 2021 02:30 PM

Bangko Sentral raises forecast for current account surplus 1
Bangko Sentral ng Pilipinas. ABS-CBN News file photo

MANILA - The Bangko Sentral ng Pilipinas on Thursday revised its current account surplus projection for this year to $9.1 billion, or 2.3 percent of GDP, up from a December forecast of $6.1 billion, or 1.5 percent of GDP.

It expects a current-account surplus of $5.2 billion, or 1.2 percent of gross domestic product, for next year, the Bangko Sentral ng Pilipinas (BSP) said in a statement.

The country's 2021 external position is looking up, BSP Governor Benjamin Diokno told reporters, citing improving growth of both exports and imports.

The current account yielded a surplus of $13 billion last year, equivalent to 3.6 percent of GDP, preliminary BSP data showed.

The BSP revised its exports growth forecast this year to 8 percent from 5 percent in December, and expects imports to grow 12 percent versus a previous projection of 8 percent.

It expects the gross international reserves to pick up to $114 billion by end-2021, from end-2020 level of $110.1 billion, and further to $117 billion by end-2022.

The balance of payments is projected to yield a surplus of $6.2 billion this year, or 1.6 percent of GDP, higher than the December forecast of $3.3 billion, or 0.8 percent of GDP.

It projects a BOP surplus of $3.8 billion, or 0.9 percent of GDP, for next year.

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