The latest outlook for the balance of payments already takes into account the national government’s (NG) planned increase in infrastructure spending over the medium term. The current account is expected to be in deficit in the medium term, reflecting continued imports of capital goods, raw materials and intermediate goods imports as the government ramps up its massive infrastructure program.
Nonetheless, fiscal spending is being undertaken prudently. The NG has put a cap on its fiscal deficit to GDP ratio at 3.2 percent for 2019 and 2020, mitigating any pressure on the current account coming from the infrastructure program.