Talking about the current account deficit, this is not something out of the ordinary, especially for a growing economy like ours that is investing vigorously in its future through an aggressive public infrastructure drive. With rising public and private investments, importation of rawer materials, intermediate goods, and capital equipment has also been growing.
This explains the current account deficit, which nevertheless, is financeable, given robust foreign exchange inflows in the financial and capital account. Driving the country’s BOP surplus are reliable inflows of Overseas Filipinos’ remittances, business process outsourcing (BPO) revenues, and tourism receipts.