Espenilla: PH current account deficit no cause for alarm
The Philippines’ current account deficit remains manageable as it is still lower than one percent of the country’s gross domestic product, the head of the Bangko Sentral ng Pilipinas said.
The current account deficit is the difference between the amount of goods, services and payments flowing in and out of the Philippines.
“The current account deficit today is much lower than one percent of GDP and we have no intention to see the current account deficit go higher than that,” BSP Governor Nestor Espenilla Jr. said.
Data from the BSP showed that country’s current account incurred a $318 million deficit in the first quarter, equivalent to 0.4 percent of GDP. This was a turnaround from the $730 million surplus recorded year ago, mainly due to government’s increased spending.
BSP earlier projected that current account, one of the major components of the balance of payments, would reverse to a deficit of $600 million this year from a surplus of $600 million last year.