BOP deficit to widen as Middle East war drives dollar outflows
MANILA, Philippines — The Philippines is set to post a bigger gap between foreign earnings and spending this year amid the Middle East conflict, the central bank said.
The Bangko Sentral ng Pilipinas now forecasts a $7.8 billion balance of payments (BOP) deficit, or about 1.5 percent of GDP, up from an earlier $5.9 billion estimate.
READ: Philippine BOP deficit widened to 10-month high in February
The BOP shortfall is expected to widen to $8.5 billion, or 1.6 percent of GDP, next year.
“Global growth remains below pre‑pandemic trends, while world trade momentum is expected to weaken as tariff‑related front‑loading unwinds,” the central bank said.
“At the same time, elevated geopolitical tensions, particularly in the Middle East, adds downside risks mainly through higher energy prices and episodic risk‑off sentiment,” it added. /dda
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