Fitch: PH consumer spending to grow 6.7% this year

Consumer spending in the Philippines is expected to grow at a slower pace of 6.7% this year due to the lockdown imposed on Luzon to contain COVID-19, down from 9.8% last year.

Spending will focus more on food and health-related products while purchases for non-essential items like clothing, footwear, and appliances are expected to decrease.

The think tank Fitch Solutions predicts this trend based on spending patterns observed in China and South Korea during their respective lockdowns.

Fitch Solutions also noted evidence of panic buying in urban areas such as Metro Manila, where richer consumers can afford to stockpile essential goods.