BSP projects PHP BOP surplus in '20 despite pandemic

Philippine monetary officials project a USD6 million surplus in the country's balance of payments (BOP) for 2020 despite the economic impact of the pandemic, down from an earlier projection of USD2.9 billion.

The current account deficit is projected at 0.5% of GDP this year, compared to a previous forecast of 2.1%. For next year, the BOP surplus is expected to be USD2.4 billion and the current account deficit USD4.4 billion.

Gross international reserves are projected to reach USD90 billion this year and USD91 billion in 2021, up from earlier projections.

Exports of goods are forecasted to contract by 4% this year, while imports are expected to decline by 5.5%. Cash remittances are seen to decrease by 5%, driven by the repatriation of overseas Filipino workers who lost their jobs.