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PH current account gap doubled to USD 2.5 Bill in 2017

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PHP OecTHE current account deficit more than doubled to $2.5 billion in 2017 from the $1.2-billion gap a year ago on the back of the widening trade-in-goods deficit, the Bangko Sentral ng Pilipinas said Friday. Data showed the deficit was the biggest since 1999, when the current account shortfall stood at $2.85 billion. The current account is one of the main components of the balance of payments. Bangko Sentral assistant governor Francisco Dakila Jr. said in a briefing Friday the higher trade deficit more than offset the increased net receipts in the trade-in-services, and secondary and primary income accounts during the year. The trade-in-goods deficit for 2017 rose 15.9 percent to $41.2 billion as the growth in imports of goods of 14.2 percent outpaced that of exports of goods at 12.8 percent “The widening of trade-in-goods deficit was reflective of the continued growth of the economy as the growth in imports was driven by demand for goods to be used for infrastructure projects of the government,” Dakila said .........