BMI forecasts 5.3% growth in Philippine consumer spending this year

Fitch Solutions' unit BMI predicts continued growth in consumer spending in the Philippines, with a forecast of 5.3 percent increase this year.

BMI's report released on Thursday projects household spending to reach PHP13.2 trillion, driven by strong economic growth and a stable labor market.

The think-tank attributes this outlook to easing inflation, which will boost household incomes and purchasing power, while noting risks such as prolonged high inflation and weaker remittances.

Consumer confidence has shown upward momentum amid the continued recovery from the pandemic, with improvements seen in the central bank's latest consumer expectations survey.

Government initiatives such as the Enterprise Productivity Act and the Apprenticeship Bill are expected to improve employment conditions and attract overseas investments.