BSP cuts external outlook as war weighs on foreign inflows

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MANILA, Philippines – The Philippines is likely to face a weaker external position this year than previously anticipated as the conflict in the Middle East weighs on dollar inflows from investments and overseas remittances, according to the Bangko Sentral ng Pilipinas (BSP).

In a statement, the BSP said the country was projected to post a balance of payments (BOP) deficit of $10.7 billion in 2026, equivalent to 2.1 percent of gross domestic product (GDP).

READ: BOP deficit narrowed in April – BSP

That was wider than the central bank’s previous forecast of a $7.8-billion gap, or 1.5 percent of GDP. It would also mark a bigger shortfall than the $5.7-billion BOP deficit recorded in 2025.