Connect with us

Hi, what are you looking for?

Economy

BoP 2021 estimate raised on better economic landscape

The Philippine central bank raised its balance of payment (BoP) projection for this year on expectations of an improved economic landscape here and overseas.

It now expects the payment position to post a $7.1 billion surplus by year-end, which is lower than the $16-billion surplus last year but higher than the $6.2-billion surplus projection made in March.

“The better-than-expected global economic outlook for the year is driven by upward revisions in the growth prospects of major advanced economies such as the US and Japan, the country’s major trading partners,” the Bangko Sentral ng Pilipinas (BSP) said in a statement on Friday.

On the local front, government efforts to fast-track, the recovery and the faster rollout of coronavirus vaccines are expected to “boost market confidence and encourage further expansion of domestic economic activities.”

The BoP which measures the country’s transactions with the rest of the world. A surplus means more funds entered the economy.

Cash remittances from migrant Filipino workers are expected to grow by 4% this year, unchanged from the previous estimate.

“This is supported by expectations of improved labor mobility following rising vaccination levels in the country and in major destination countries, easing of travel restrictions and reopening of borders to foreign workers,” the BSP said.

It expects the payment position to decline to a $2.7-billion surplus next year, driven mainly by the anticipated narrower current account surplus of $6.7 billion. This is lower than the $3.8-billion surplus estimate given in March.

The outlook depends on the sustained performance of both exports, which should grow by 6% and imports, which should rise by 10%, the central bank said.

Meanwhile, foreign direct investment and hot money inflows are projected to reach $8.5 billion and $7.4 billion, respectively, as the investment climate improves further.

The emerging gross international reserves in 2022 is estimated to reach $117 billion in anticipation of continued foreign currency deposits by the National Government to address the coronavirus pandemic and fast-track its infrastructure program.

The estimates considered potential renewed coronavirus lockdowns, Zeno Ronald R. Abenoja, senior director at the central bank’s Department of Economic Research told an online news briefing.

The country posted a BoP deficit of $2.8 billion in the first quarter, higher than the $68-million deficit a year earlier after an uptick in net outflows in the financial account, coupled with the reversal of the current account from a surplus to a deficit during the period.

The current account posted a $614-million deficit as the merchandise trade gap widened on import growth amid the gradual reopening of the domestic economy, the BSP said. Lower net receipts of primary income also contributed to the deficit.

The country had a $225-million current account surplus a year earlier.

“An expected economic recovery that would lead to a corresponding pickup and rebound in imports plus remittance growth means the current account may not post a substantial surplus,” Robert Dan J. Roces, chief economist Security Bank Corp. said in a Viber message. — BML

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

People living in rural areas are having to travel further to find somewhere to withdraw and deposit cash free of charge, says the City...

Investing

Ministers have ruled out extending the list of workers who are exempt from self-isolation rules and warned that the August 16 date for lifting...

Economy

The House of Representatives will adopt the Senate’s version of the proposed measure taxing Philippine Offshore Gaming Operators (POGO), a key lawmaker said on...

Economy

President Rodrigo R. Duterte on Friday approved the recommendation of his pandemic task force to enforce stricter quarantine rules in Manila, the capital, and...

Economy

Thirty-seven percent of Filipinos are optimistic that their lives will improve over the next 12 months, a non-commissioned survey shows.  Of the 1,200 respondents in Social Weather Stations’...

Economy

Six electricity consumers on Friday filed a complaint with the Ombudsman against Department of Energy (DoE) Secretary Alfonso G. Cusi, alleging that the government official has neglected his duties.  “In his five...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!