One of the key risks to the Philippines over the coming year is a further widening of the current account deficit. Data released earlier in the week showed the deficit widened to 3.0% of GDP in the four quarters to Q3 – the most on record. With weak global demand set to drag on exports and the government’s infrastructure programme likely to keep imports strong, the current account deficit is expected to widen further over the coming quarters. This in turn is likely to put renewed downward pressure on the peso. We expect the peso to fall 5.0% to 55 to the dollar by the end of 2019.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services