Prospects bright for Filipino consumers

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By: Doris Dumlao-Abadilla, Inquirer.net

This new decade will likely be auspicious for the Filipino consumer, beginning this year when the domestic economy is likely to grow faster at 6.2 percent to 6.6 percent, local investment house First Metro Investment Corp. (FMIC) said.

With robust macroeconomic fundamentals supporting low interest rates, benign consumer prices and corporate earnings, FMIC expects the Philippine Stock Exchange index (PSEi) to climb to 8,600 to 8,900 this year.

Economic growth will be fueled by stronger consumer spending, easing monetary conditions and growing tourism sector according to FMIC.

The 2018 Family Income and Expenditures Survey suggested that families below the poverty threshold had declined to 12.1 percent from 17.9 while the percentage of poor people fell to 16.6 percent from 23.3 percent, which meant that 5.9 million people and 1.1 million families had been emancipated out of poverty.

Consumer spending, which accounts for 66 percent of the country’s GDP, will expand further driven by robust government and infrastructure spending, higher employment rate, manageable inflation and robust OFW remittances.

FMIC expects inflation this year to average at 2.5 to 2.8 percent.

 

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