MANILA, March 24 (Xinhua) -- The Philippine central bank on Monday said the country's balance of payments (BOP) position is projected to be weaker in 2025-2026, due to slower global trade and subdued investor confidence linked to increased uncertainty in global trade policy and geopolitical developments.

"The outlook nevertheless reflects a sustained expansion in the domestic economy, supported by easing inflation and less restrictive monetary policy," the Bangko Sentral ng Pilipinas (BSP) said in a press release.

Global economic growth is expected to remain soft in 2025 and 2026, as economies contend with U.S. trade policy changes and responses from trading partners, the BSP said.

Global growth prospects are expected to be further dampened by some factors, including "prolonged geopolitical tensions in conflict zones" and "commodity price volatility," said the BSP.

Meanwhile, it said domestic growth prospects provide a cushion against global headwinds.

"Domestic expansion driven by private consumption, investments, including government infrastructure spending, as well as continued progress on legislative reforms to improve the business environment should encourage foreign investments and positively impact the external sector outlook in the near to medium term," the BSP said.

"The overall BOP position is expected to show a deficit in 2025 and in 2026," with a wider current account gap resulting from a higher trade-in-goods deficit and lower net receipts in trade-in-services, the central bank said. Enditem

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