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THE BANGKO SENTRAL ng Pilipinas (BSP) expects the country’s balance of payment (BoP) position to swing to a deficit this year, as well as post a wider current account deficit, largely due to global trade volatilities.

“The Philippine BoP position is projected to be weaker in 2025-2026 due to slower global trade and subdued investor confidence linked to increased uncertainty in global trade policy and geopolitical developments,” it said in a statement late on Monday.

“The outlook nevertheless reflects sustained expansion in the domestic economy, supported by easing inflation and less restrictive monetary policy.”

The central bank’s latest projection shows the overall BoP will register a deficit of $4 billion this year, equivalent to -0.8% of gross domestic product (GDP).

This is a reversal from its earlier forecast of a $2.1-billion surplus (0.4% of GDP) for 2025.

In 2024, the BoP position stood at a surplus of $609 million, plunging by 83.4% from the $3.672-billion surplus at end-2023.