Bangko Sentral ng Pilipinas (BSP) Governor
For the current accounts component of the BOP, the forecast was also revised downward to a surplus of
BOP summarizes the country's economic transactions with the rest of the world over a certain period. It consists of the current account, the capital account, and the financial account.
The latest BSP figure showed that the payments balance recovered after months of deficit as it posted a
Tetangco said the central bank's decision to cut down the BOP projection was made in view of an expected wider trade deficit this year, with imports seen rising by 9 percent, resulting in
He cited the import requirements of domestic companies, particularly the electronics industry, and the ongoing post-Yolanda reconstruction efforts as the main drivers of import growth.
At the same time, export growth is projected to be 6 percent, although this will result in lower overall exports of
"We are looking at higher imports given the requirements of the domestic economy, [and] then there is also a lower figure of exports in absolute terms," Tetangco explained.
Income from services is seen reaching
The growth rate of cash remittances coursed through banks was pegged at 5 percent to
In the financial account, net inflows of foreign direct investments is expected to settle at
"There is a big improvement in other investments from a negative figure earlier or net outflow. We are now projecting a small inflow and this is because of the increase in foreign borrowings of the private sector," Tetangco said.
Hot money or net foreign portfolio investment is projected at
As a result, the BSP expects the country's gross international reserves (GIR) to reach
Tetangco explained that the revised BOP projections are based on the most recent economic outlook from major economic partners of
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