The country’s balance of payments (BOP) is now expected to have a narrower deficit of $1.2 billion in 2023, compared to the previous forecast of $1.6 billion, according to the Bangko Sentral ng Pilipinas (BSP). The updated forecast is mainly due to the slightly weaker global growth outlook.
The trade deficit of the Philippines is also expected to be narrower this year, as both exports and imports decline due to decreasing commodity prices. The 2022 trade deficit stood at $58.3 billion, a 38% increase from the previous year.
The BSP maintained its forecast of a 6% increase in exports and an 8% rise in imports. The deficit in the Philippines’ transactions with the rest of the world is expected to be smaller, thanks to sustained growth in travel receipts and income from business process outsourcing (BPO).
Remittances from overseas-based Filipinos are also expected to increase, supported by steady demand for Filipino workers amid a labor shortage in destination countries. Foreign direct investments (FDI) will continue to post net inflows, although at a lower level due to dampened investor sentiment.
The BSP also forecasts a 9% rise in BPO revenues, a 50% surge in tourism revenues, and a 3% increase in remittances. The expected full-year net inflow of FDI was reduced from $12 billion to $11 billion. However, downside risks continue to dominate the global and trade outlook, particularly in the near term.
The BSP remains vigilant and stands ready for any necessary policy action to support the stabilization of the domestic economy amid uncertainties in the global economic landscape.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
