Philippines Sees Wider Balance of Payments Gap, Lower Reserves

The Philippine central bank forecast a wider shortfall in the country’s balance of payments coverage in the current year and the next, reflecting a drop in foreign currency reserves and a larger trade deficit.

Bangko Sentral ng Pilipinas predicts a $11.2 billion deficit in BOP this year from a previously estimated $8.4 billion gap. The nation is expected to end 2022 with $93 billion of foreign exchange reserves, down from $99 billion seen earlier.