The Bangko Sentral ng Pilipinas (BSP) has increased its projected balance of payments (BOP) surplus for 2024 to $3.5 billion, citing upward revisions in portfolio and other investments. Despite a widening current account deficit, sustained net inflows from the financial account are expected to support the BOP outlook.
The Bangko Sentral ng Pilipinas ( BSP ) revised its projected balance of payments (BOP) surplus for 2024 to $3.5 billion from an earlier estimate of $2.3 billion. The BSP 's Monetary Board released its 2024-2025 BOP outlook, showing a slightly lower figure than the actual 2023 surplus of $3.7 billion. The BOP is also expected to enjoy a surplus of $2.1 billion in 2025, despite the widening of the current account deficit from $10.4 billion to $12.1 billion.
The BSP attributed this outcome to upward revisions in forecasts for portfolio investments and other investments, which compensated for the reduction in the projected FDI level. The BSP noted that sustained net inflows from the financial account will continue to support the overall BOP outlook. While global trade is expected to pick up in 2025 due to moderating global inflation and improved business activity, US-related uncertainty, particularly concerning potential policy shifts in US trade, investment, and migration policies, remains a key downside risk. The BSP anticipates further buildup in gross international reserves (GIR) for 2024-2025, projecting GIR at $109 billion in 2024 and $110 billion in 2025. The latest forecasts indicate continued resilience of the country's overall BOP position for 2024 and 2025, although at a decelerating pace compared to 2023
Balance Of Payments Philippines BSP Surplus Investments Gross International Reserves Current Account Deficit Global Trade US Policy Uncertainty
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