Philippines revises 2022, 2023 c/a projections

MANILA, Dec 9 (Reuters) – The Philippine central bank on Friday revised its current account projections for 2022 and 2023 to take into account the weaker global growth outlook, elevated inflation and the domestic economy’s pace of expansion.

The central bank now expects a current account deficit of USD 20.5 billion, or 5.1% of gross domestic product (GDP), this year, compared with its previous projection of USD 20.6 billion, or 5% of GDP.

For 2023, it expects a current account deficit of USD 19.9 billion, or 4.7% of GDP, compared with its earlier deficit forecast of USD 20.1 billion, or 4.5% of GDP.

The central bank said the revisions reflected intensifying external risks from a more subdued global growth outlook, persistent inflation pressures, the protracted Ukraine-Russia conflict, and supply chain disruptions.

Central bank officials also took into consideration the positive outlook for the Philippine economy which was on track to meet its growth target of 6.5%-7.5% this year, with the pace of expansion forecast to remain at least 6% next year.

The central bank revised its balance of payments (BOP) forecasts for both years, which are now expected to show a deficit of USD 11.2 billion in 2022 and USD 5.4 billion in 2023, wider than previous estimates.

Forecasts for gross international reserves were lowered to USD 93 billion for both 2022 and 2023, from the central bank’s previous estimate of USD 99 billion and USD 100 billion respectively.

Remittances from Filipinos working and living abroad were seen on track to grow 4.0% this year and next.

(Reporting by Neil Jerome Morales and Karen Lema; Editing by Ed Davies)