By: Manila Times
Consumer spending in the Philippines is seen to recover in 2021 after posting subdued growth this year, according to a Fitch Group unit.
Fitch Solutions said it expected household spending to start rebounding next year by rising by 5.7 percent year-on-year, a big improvement from the 8-percent contraction it forecast this year.
It also projected the country’s main consumer spending categories to resume growing in 2021.
“Food and non-alcoholic-drink spending were prioritized in household budgets in 2020, so growth in spending on these items, while remaining positive, will be slightly lower in 2021,” the Fitch unit said.
It also forecast spending on food and non-alcoholic beverages to pick up by 5.3 percent in 2021.
“Our forecast for household spending over 2021 takes into account the economic impact of the Covid-19 pandemic on Filipino consumer spending and the government’s stimulus measures to support the economy,” Fitch Solutions explained.
Fitch Solutions has stressed the importance of the stimulus measures enacted this year, which have so far hit P595.6 billion or 3.1 percent of the country’s gross domestic product.
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