On Wednesday, the Philippine Central Bank made a statement to have revised the balance of payment projections for the current year, which is expectant of generating a $6 billion surplus despite the coronavirus pandemic.
From a May forecast, there was a 0.5% of the GDP as compared to the current revised amount, which stands at a surplus equivalent of 1.6% of the GDP as per the Bangko Sentral ng Pilipinas (BSP). This translates to a deficit of $1.6 billion.
With this projection, the BSP is expectant of a current surplus of $3.1 billion (0.8%) in 2021. However, it also warned of the future uncertainty owing to the pandemic.
In a statement, BSP said that it highly expects a BOP surplus of $8.1 billion by the year-end, which translates to 2.2% of the GDP and is way higher than the May projection.
Gross international reserves for the Southeast Asian country is anticipated to reach $100 billion and $102 billion by the end of this year and next year, respectively.
With a 5% growth rate, exports are likely to recover despite a 16% contraction in 2020, according to BSP.