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UPDATE 1-Philippines cbank revises 2020 c/a forecast to $6 bln surplus

Published 10/14/2020, 11:38 AM
Updated 10/14/2020, 11:40 AM
© Reuters.

* Current account outlook revised on narrower trade gap
* Forecasts for 2020 BOP surplus, forex reserves higher
* Cbank warns uncertainty remains over pandemic's impact

(Adds other projections, comments from statement)
MANILA, Oct 14 (Reuters) - The Philippine central bank said
on Wednesday it has revised the 2020 balance of payment
projections, with the current account now expected to yield a $6
billion surplus, taking into account the gradual recovery of a
pandemic-ravaged economy.
The Bangko Sentral ng Pilipinas (BSP) revised its current
account projection to a surplus equivalent to 1.6% of gross
domestic product, from a May forecast of a $1.9 billion deficit,
or 0.5% of GDP, to reflect an expected narrower trade gap.
It expects a current account surplus of $3.1 billion for
next year, or 0.8% of GDP.
In a statement, the BSP said it now expects a BOP surplus of
$8.1 billion this year, or 2.2% of GDP, significantly higher
than the May projection of $0.6 billion, or 0.2% of GDP.
It sees a BOP surplus of $3.4 billion, or 0.9% of GDP, for
next year.
The Southeast Asian country's gross international reserves
are expected to reach $100 billion by end-2020, higher than the
May forecast of $90 billion, and rise to $102 billion next year.
Exports are still projected to contract 16% this year, but
will likely recover in 2021 with a 5% growth rate, the BSP said.
However, imports are seen declining 20% this year, steeper
than the previous forecast of an 18% drop, before rising 8% next
year, it said.
Despite the improved BOP outlook, however, the BSP warned
that uncertainty remains over the duration, direction and extent
of the pandemic's impact on the economy.


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