<ul data-eligibleForWebStory="false"><li>Deutsche Bank Research predicts pressure on the peso due to the Philippines' sustained current account deficit caused by increasing infrastructure investments and higher capital good imports.</li><li>The current account deficit reached $4.25 billion in the first quarter, equivalent to 3.7% of the GDP, up from the previous year's 1.9%.</li><li>Large-scale infrastructure projects like the Metro Manila Subway, North-South Commuter Railway, and New Manila Airport contribute to the deficit, with the government targeting 5-6% of GDP for annual infrastructure spending.</li><li>Despite the positive impact on long-term prospects, the near-term FX pressure is expected to increase, with the BSP planning two rate cuts, leading to a recent decline in the peso's value.</li></ul>

Sustained current account deficit expected to put pressure on peso

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