Central bank downgrades 2014 BOP forecast

MANILA, Philippines (Xinhua) - The central bank today slashed its projection for the country's balance of payments (BOP) position and its components this year amid uncertainty in global financial markets.

Central bank Governor Amando Tetangco, Jr. said the BOP surplus is projected to reach $1.1 billion this year, lower than the previous forecast of $3 billion.

Meanwhile, the forecast net foreign direct investments (FDIs) in 2014 was slashed to $1 billion from $2.6 billion. The projection for net hot money inflows was also reduced to $1.5 billion from $2.1 billion.

As the BOP surplus is expected to be lower this year, the central bank also downgraded its forecast for gross international reserves to $85.3 billion from an earlier estimate of $88 billion.  

"The revisions are essentially based on the most recent economic outlook for the major trading partners of the Philippines, the bouts of volatility that we have seen in global financial markets and countries' macroeconomic fundamentals," said Tetangco.