##demic with high pre - shock cars, which enable them to maintain the minimum cars even after the stress test exercises. sufficient liquidity. similarly, our simulations show that post - shock liquidity coverage ratio ( lcr ) would hurdle the 100 percent lcr requirement. banks continued to support their clients ’ credit needs during the lockdown despite the implementation of moratorium on loan repayments. while the level substantially reduced banks ’ leeway to fund client requirements, it is encouraging that a buffer remains notwithstanding the reported outflows during the lockdown. in addition, the bsp ’ s liquidity measures ensure availability of funds for the banks to sustain their operations. sustained profitability. profitability may weaken, but will be sustained. philippine banks ’ credit 4 / 5 bis central bankers'speeches costs will increase as asset quality weakens but sound credit risk management systems will mitigate its adverse effects. in closing, let me cite some key takeaways from this presentation : first, the philippine banking system is among the strongest and most stable in the region going into the crisis. this is exhibited in the sustained growth of core deposits that finances loan and asset expansion. the banking system is expected to be resilient because of its robust liquidity position, improved asset quality, strong capitalization, and satisfactory risk management systems. second, the bsp remains committed to its monetary, price, and financial stability mandates. we are ready and able to deploy the full range of our monetary instruments to safeguard financial stability, maintain price stability and ensure the efficient functioning of the domestic financial market. third, the bsp will continue to undertake regulatory and market reforms, and even stay ahead of the game, to effectively respond to the prevailing needs of the financial system and the economy even after the ongoing covid - 19 pandemic. fourth, the bsp will also strengthen its collaborations with stakeholders here and abroad as a means to improve the delivery of our mandate. along this line, we hope that the acpapp remains an ally in promoting integrity in financial reporting that will further enhance the public ’ s confidence in the financial system. last, and most importantly, despite the adverse impact of the current health crisis on the domestic financial system, the philippine banking system is expected to remain stable, sound, resilient and inclusive now and in the future. former us president john f. kennedy once said, “ the chinese use two brush strokes to write the word ‘ crisis. ’ one brush stroke stands for danger ;

use in previous years, which is a key factor in the smaller current - account deficit. private savings already showed a recovery in the first quarter of the year. going forward, its level will be above those of the past few years. public savings will remain around 2 % of gdp over the projection horizon, in line with compliance with the structural balance target. it is estimated that the current - account deficit will close this year at 3. 7 % of gdp, to stand at around 4 % in 2024 and 2025. in the central scenario, gross fixed capital formation will maintain a low profile. this projection continues to incorporate a complex external scenario, with high uncertainty and still restrictive financial conditions. survey information also shows low levels of investment for the coming quarters, and entrepreneurial expectations continue to be pessimistic, mostly so in the construction sector ( table 1 ). the external impulse relevant to chile will remain moderate. although first - quarter figures exceeded expectations in some economies, such as china, several factors suggest that this will be transitory. in fact, bank credit to companies has tightened in the u. s. and the eurozone, pointing to a weak performance of activity and investment ahead. in latin america, the outlook remains unfavorable, as it combines deteriorating financial conditions with stress factors in several economies. in this context, fiscal spending is not expected to be a major source of external momentum, given the fiscal consolidation process and the weak global scenario. thus, and heavily influenced by china's improved performance earlier in the year, our trading partners'projected growth for 2023 rises to 3 %, up from the 2. 4 % estimated in march. for 2024 and 2025, there is no change, with projected increases of 2. 3 % and 3. 0 %, respectively ( figure 18 ). the terms of trade will be somewhat lower than expected in march. this is explained by the weak global growth outlook, in a context where commodity prices have already declined since the beginning of the year. in the case of copper prices, averages of us $ 3. 85, us $ 3. 65 and us $ 3. 5 per pound are forecast for 2023, 2024 and 2025, respectively. for oil, the projection points to average brent - wti prices of us $ 76 in 2023, gradually declining to us $ 68 in 2025. food prices have behaved in line with expectations, and a downward trajectory similar to the march report is maintained