(File photo)
MANILA – The Bangko Sentral ng Pilipinas (BSP) said the current account recorded a lower deficit in the first half of the year.
In a virtual briefing on Friday, BSP Department of Economic Statistics Senior Director Redentor Paolo Alegre said that for the first half of the year, the current account recorded a deficit of USD7.1 billion, down by 17.8 percent from the USD8.6 billion deficit in the first half of 2023.
Alegre said the lower current account deficit was mainly due to the narrowing trade in goods deficit and the higher net receipts in the primary and secondary income accounts.
The current account deficit during the period is equivalent to -4.1 percent of the country’s gross domestic product (GDP).
For the second quarter alone, the current account deficit, however, went up by 25 percent.
"For the second quarter we see an increase in the current account deficit to USD5.1 billion from USD4.1 billion," said Alegre.
"It's really driven by trade in goods deficit which increased in the second quarter," he added.
The BSP earlier revised downward its current account deficit for this year.
For 2024, the current account deficit is projected to hit USD4.7 billion, down from the initial forecast of USD6.1 billion.
"The lower current account shortfall is anchored on the narrowing of the merchandise trade gap as growth in goods imports is estimated to moderate due, in turn, to easing in import prices while the goods exports are expected to remain on a steady recovery pace," the BSP said. (PNA)
