The Bangko Sentral ng Pilipinas (BSP) has flagged structural risks that could make it more difficult for the Philippines to manage its current account, according to a report by Philstar Biz. The central bank highlighted weak manufacturing, underdeveloped agriculture, import dependence, and emerging global risks as factors weighing on the country's external position.
The BSP noted that these structural issues have been persistent and continue to challenge the country's balance of payments. The weak manufacturing sector and underdeveloped agricultural sector contribute to the country's reliance on imports, while global economic uncertainties add further pressure.
The central bank's warning underscores the need for targeted policies to address these structural vulnerabilities. Without improvements in domestic production and export competitiveness, the Philippines may face sustained current account deficits.