BSP sees wider 2022, 2023 current account deficits on global growth woes

MANILA -The Philippine central bank on Friday revised higher its 2022 and 2023 projections for the country’s current account deficits, citing intensifying risks of a global growth slowdown as inflation and interest rates climb.

The Bangko Sentral ng Pilipinas (BSP) now expects the current account balance this year to register a deficit of $20.6 billion, or 5 percent of gross domestic product, compared with its previous forecast of $19.1 billion, or 4.6 percent of GDP.

For 2023, the deficit is seen at $20.1 billion, equivalent to 4.5 percent of GDP. That compares with a previous projection of $20.5 billion, equivalent to 4.4 percent of GDP.

This year’s balance of payments (BOP) is forecast to show a deficit of $8.4 billion, or 2 percent of GDP, bigger than the previous estimate of $6.3 billion, or 1.5 percent of GDP.