THE peso is expected to decline further against the US dollar and may close the year at 53.50 because of the widening current account deficit, the Australia and New Zealand Banking Group Ltd. said in a report over the weekend.
Latest data showed the country’s external position continued to weaken in 2017, with the current account deficit hitting $2.5 billion, surpassing the projection of a $100-million gap for the year.
The deficit was also more than double compared to the $1.2-billion gap a year ago. It was the biggest since 1999, when the current account shortfall stood at $2.85 billion.
The Bangko Sentral ng Pilipinas expects the current account deficit to hit $700 million this year.
ANZ said the full-year deficit last year accounted for around 0.8 percent of the GDP, in sharp contrast in 2013, when the country ran a surplus equivalent to 4.2 percent of GDP.
