BSP raises outlook for BPO, FDI for 2021 as economy improves

Warren De Guzman, ABS-CBN News

Posted at Dec 10 2021 05:30 PM

Clouds hover over Metro Manila, seen from Antipolo, Rizal, on July 29, 2021. Mark Demayo, ABS-CBN News/File
Clouds hover over Metro Manila, seen from Antipolo, Rizal, on July 29, 2021. Mark Demayo, ABS-CBN News/File


MANILA - The Bangko Sentral ng Pilipinas (BSP) said Friday the Balance of Payments (BOP) position of the Philippines is likely to end up at a surplus of just $1.6 billion by the end of 2021, from an earlier forecast of $4.1 billion. 

The BOP measures the transactions of the country with the global economy.

The current account is also expected to end at a deficit of $4 billion by the end of 2021, from an earlier forecast of $3.5 billion, the BSP said in a briefing.

This, as imports are expected to grow by 30 percent this year, instead of the original forecast of 20 percent, the central bank said. That is much faster as well compared to the export growth seen hitting 16 percent.

Growth in services, meanwhile, is helping to offset the heavy net importation, the BSP said. Business Process Outsourcing receipts in particular are seen to grow 9 percent this year, from an earlier forecast of 5 percent.

Foreign Direct Investments (FDIs) have also exceeded expectations. The goal for 2021 was $7 billion. The September figure had already exceeded target. With that, FDIs will likely hit at least $8 billion by the end of the year, the BSP said.

Net inflows from FDIs hit $7.3 billion for the first 3 quarters, data showed.