The Bangko Sentral ng Pilipinas (BSP), the Philippine central bank, expects revenues from the business process outsourcing (BPO) industry to grow by 5% this year. The BSP also expects remittances to grow by 3%, tourism receipts by 12%, and exports by 4%.
However, the central bank said the country’s balance of payments position booked its widest deficit in 16 months, hitting US$1.36bn in January. The balance of payments is the difference in total values between payments into and out of the country over a given period.
A deficit means more foreign exchange flowed out to pay for the importation of more goods, services, and capital than what flowed in from exports, overseas remittances, BPO earnings, and tourism.