The Monetary Board now expects the balance of payments swinging to a deficit of $4.3 billion at end-2022, instead of easing to a surplus of $700 million as forecast in December 2021, mainly due to greater uncertainties in global developments.
“Meanwhile, the direct economic linkages of the Philippines with Russia and Ukraine are limited,” Abenoja said in a media briefing. “However, the conflict could negatively impact our major trading partners and present headwinds to the domestic economy.”
Further, the push for the full reopening of the economy this year alongside the continued purposeful rollout of vaccination efforts, which now extend to the younger population, are also expected to boost the overall business climate. He said this reflected the projected acceleration of goods imports by more than twice the growth rate of goods exports at 15 percent and 7 percent, respectively. These are expected amid improving domestic demand as well as a surge in international oil prices.