Wider CA deficit a key risk for peso

The Philippines’ widening current account deficit will likely continue to put pressure on the peso next year, London-based Capital Economics said as it retained a forecast that the currency could fall to as low as P58 against the dollar.

In a report released over the weekend, the research consultancy noted that it made sense for a relatively undeveloped economy like the Philippines to import capital from abroad, which is what running a current account deficit entails.