Central bank tweaking BOP forecasts for 2015


The Bangko Sentral ng Pilipinas (BSP) is finalizing revisions to its balance of payments (BOP) projections, particularly with respect to trade performance and foreign portfolio components.

“Because of . . . actual performance, most likely, the change would be in trade and maybe portfolio investments,” central bank Governor Amando Tetangco Jr., told reporters at the sidelines of a forum on Tuesday.

Still, he said the overall BOP projection of a $2-billion surplus remained achievable.

“If you recall the January to September BOP position, it was at [a]$1.8-billion surplus, so the projected $2-billion surplus is very close . . . achievable,” he said.

Latest data from the Philippine Statistics Authority (PSA) showed that as of end-August, the country’s merchandise exports were down 4.3 percent to $39.34 billion from a year ago, while cumulative imports expanded by 1.5 percent to $43.65 billion.

This resulted in a trade deficit of $4.310 billion for the current eight-month period, wider than the $1.890-billion deficit seen a year earlier.

The current growth rates for exports and imports are below the central banks respective projections of 7 percent and 2 percent for 2015.

Meanwhile, cumulative foreign portfolio investments as of September yielded a net outflow of $414 million, narrowing from the $854-million net outflow seen in the comparable period last year.

This also way below the central bank’s $1.4-billion net inflow projection for this year.

The BOP summarizes the country’s economic transactions with the rest of the world over a certain period. It consists of the current account, capital account and the financial account.


Please follow our commenting guidelines.

Comments are closed.