Philippines forecasts 2025 current account deficit at 3.2% of GDP

MANILA – The Philippines’ current account deficit will likely settle at $15.5 billion this year, amounting to 3.2% of GDP, slightly narrower than the previous forecast in October, the central bank said on Friday.

The balance of payments deficit is expected to reach $6.2 billion in 2025, or 1.3% of GDP, the central bank added. The Philippines posted a modest $600 million surplus in 2024.

“This reversal largely reflects a continued current account shortfall arising from a sustained trade-in-goods gap and weaker services receipts,” the Bangko Sentral ng Pilipinas said in a statement.

For 2026, the current account balance is seen at a deficit of $15.3 billion, or 3.0% of GDP, while the balance of payments is expected to record a deficit of $5.9 billion, or 1.2% of GDP.

Foreign exchange reserves are projected to increase to $110 billion by the end of 2026, with growth in remittances remaining at 3.0%.

“Goods trade is expected to remain soft, shaped by weaker global demand, easing commodity prices, and slower domestic growth momentum,” the BSP said. — Reuters