By Neil Jerome Morales and Mikhail Flores
MANILA (Reuters) - The Philippine central bank on Friday revised down its current account deficit projections for 2023 and 2024 on challenging external conditions, with both exports and imports likely to contract this year.
The Southeast Asian country's current account balance for this year is now projected to show a deficit of $11.1 billion, or 2.5% of the gross domestic product. That is smaller compared with the previous forecast of a $15.1 billion deficit, equivalent to 3.4% of GDP.
For 2024, the Bangko Sentral ng Pilipinas sees a current account deficit of $10.3 billion, or 2.1% of GDP, narrower than the previous forecast of $15.4 billion, accounting for 3.2% of GDP.
"Consistent with the emerging trend observed in most economies, both goods exports and imports are predicted to contract this year," the BSP said in a statement.
Owing mainly to a narrow current account deficit, the balance of payments (BOP) for 2023 is projected at a deficit of $0.1 billion, or 0.0% of GDP, compared with the previous forecast of a $1.2 billion deficit, or 0.3% of GDP.
The 2024 BOP forecast has been revised to a surplus of $1.0 billion, equivalent to 0.2% of GDP, from a previously projected deficit of $0.5 billion, or 0.1% of GDP.
(Reporting by Neil Jerome Morales and Mikhail Flores; Editing by Martin Petty)
