Spending in the country is seen to recover this year backed by the government’s stimulus package and improving employment numbers, according to Fitch Solutions.
Following the estimated 7.0 drop in 2020, consumer spending growth forecast this year is pegged at 5.7 percent, the research company said.
“The Philippine government has been active in providing fiscal support for households,” it said. The monetary policy easing last year will result in looser lending conditions, which is expected to help support domestic demand, it added.
It said the fiscal stimulus, which will feed through into household expenditure, will propel economic output for 2021. Fitch Solutions forecast Philippine gross domestic product (GDP) this year to grow by 7.6 percent.
“The government has so far committed PHP595.6 billion (USD12.3 billion, or 3.1 percent of 2019 GDP) in fiscal packages towards vulnerable individuals and groups, which includes cash support programs for low-income households, tax deductions, and wage subsidies,” it said.
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