Philippine central bank revises 2023 current account projection

MANILA (Reuters) – The Philippine central bank said on Friday it expects a current account deficit of $17.1 billion for 2023, equivalent to 4% of gross domestic product, taking into account subdued global and domestic economic activity.

The figure is narrower than its previous projection of a $19.9 billion deficit, or 4.7% of GDP.

The Bangko Sentral ng Pilipinas (BSP) also revised its projection for the 2023 balance of payments deficit to $1.6 billion, or 0.4% of GDP, from $5.4 billion, or 1.3% of GDP.

For 2024, the BSP projected a current account deficit of $16.8 billion, or 3.4% of GDP, while the BOP is seen at a deficit of $0.5 billion, or 0.1% of GDP.

Remittances are seen to grow by 3% this year and next.

Gross international reserves are projected to pick up to $100 billion this year, from a previous forecast of $93 billion, and to $102 billion at end-2024.

(Reporting by Neil Jerome Morales and Enrico Dela Cruz; Editing by Martin Petty, Ed Davies)