MANILA – Philippine monetary officials hiked the Bangko Sentral ng Pilipinas’ (BSP) balance of payment (BOP) projection for 2021 on expectations of quicker global economic recovery but cut the 2022 forecast on expectations of higher imports growth.
From a USD6.2 billion 2021 BOP surplus projection last March, the policy-making Monetary Board (MB) hiked this to USD7.1 billion but the 2022 figure was cut from USD3.8 billion surplus to USD2.7 billion.
“The latest BOP assessment for 2021 reflects sustained optimism, fueled by expectations of improved global and domestic economic landscape, moving into the second half of this year; the better-than-expected global economic outlook for the year driven by upward revision in the prospects for advanced economies, our trading partners,” BSP Department of Economic Research (DER) managing director Zeno Ronald Abenoja said in a virtual briefing on Friday.
This, as monetary officials expect better growth outturn in the second half of this year, which bodes well for trading prospects.
The MB hiked the central bank’s exports goods growth forecast for this year from 8 percent last March to 10 percent.
Abenoja said measures by the government to stimulate economic recovery such as strengthened vaccination program rollout and fiscal stimulus along with the inputs of the private sector are plusses seen to boost market confidence, which in turn, are seen to result to more economic activities.
He, on the other hand, said dynamics of the coronavirus disease 2019 (Covid-19) remains as major risk to the economy.
“So, it is imperative to remain mindful and vigilant of the receptivity to the efficacy of vaccines, the appropriate timing of policy support, and ensuring that the unprecedented rise in government and corporate debt levels will not escalate into more vulnerabilities into the economy,” he said.
Abenoja said the positive global growth prospects for next year is seen to also impact on the domestic economy, thus, the expectation for the widening of trade in good deficit because of higher importations.
He said private sector’s domestic activities are also seen to continue that will further increase importation requirements. (PNA)
