MANILA, June 11 (Reuters) - The Philippine central bank has lowered its current account deficit projection for this year to reflect contractions in exports and imports, as the global economy reels from the impact of the coronavirus pandemic.
This year’s current account deficit will likely reach $1.9 billion, or 0.5% of gross domestic product, the central bank said, narrower than its earlier estimate of $8.4 billion. Next year’s current account gap is seen to widen to $4.4 billion or 1.1% of GDP.
Imports are expected to decline 5.5% this year, outpacing the expected 4% drop in exports.
Remittances, a key driver of economic growth, are forecast to decline 5% this year to $28.6 billion from last year’s record $30.7 billion. (Reporting by Karen Lema; Editing by Martin Petty)