MANILA (Reuters) -The Philippine central bank is forecasting the country’s current account deficit to narrow to 3.3% of gross domestic product this year and to 2.5% next year, compared to a previous estimate of 3.9% for both years, it said in a statement on Monday.
The balance of payments is projected to be at a deficit of 1.3% of GDP this year, and 0.5% next year, compared with the previous forecast of 0.8% for both years, it said.
The revisions reflect global uncertainties that could potentially dampen investor confidence, the central bank said, but the country still has enough liquidity to cushion the economy against external headwinds, it added.
Gross international reserves are expected to dip slightly to $104 billion this year, down from $106.3 billion in 2024, before rebounding to $105 billion next year, the central bank said.
The bank’s forecasts for remittances from Filipinos living and working abroad remain unchanged, and are projected to grow 2.8% this year to $35.5 billion, and by a further 3% in 2026 to $36.5 billion.
Last week, the government lowered its growth target for this year and for 2026 to 2028, citing the economic impact of tensions in the Middle East as well as shifts in U.S. trade policies.
Growth for 2025 is now projected at 5.5%-6.5%, down from the government’s earlier forecast of 6%-8%. Targets for 2026 to 2028 now stand at 6%-7%, down from the previous range of 6%-8%.
(Reporting by Mikhail Flores and Karen Lema; Editing by David Stanway)
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