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MANILA – The Philippine monetary authorities have revised upward the Bangko Sentral ng Pilipinas (BSP) Balance of Payments (BOP) projections based on the expected global economic recovery next year, the improvement in remittances, foreign direct investment (FDI) ) and foreign reserves.
The latest figure for this year is a surplus of $ 8.1 billion, or about 2.2% of national production, compared to a previous projection of a surplus of $ 0.6 billion.
For 2021, the forecast is a surplus of $ 3.4 billion.
“The projections at the base of the pyramid represent our views on the likely path of global economic recovery, as well as the prospects for business activity and foreign exchange inflows into the economy,” BSP Governor Benjamin Diokno said Thursday in a virtual briefing.
BOP sums the total transactions of a country with the rest of the world during a specific period.
Diokno said this year’s latest balance of payments figure took into account the revision of the projected growth of remittances from Filipino workers abroad (OFW) for this year, which is now -2 percent from -5. percent above.
He said other factors include the better-than-expected recovery of the world economy next year due to the reopening of economies, as well as a narrower-than-expected goods trade deficit.
Another factor is the revision of the FDI forecast for 2020 from a contraction of 45.9 percent last May to a contraction of almost 27.1 percent, according to the decision of the Monetary Board of policy-making last October, he said .
“With the gradual opening of the economy in the Philippines and in other jurisdictions, we expect to see more positive developments in the external sector accounts in the coming months and years,” he added. (PNA)
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