Philippines’ consumer spending to rise 5.5% YoY in 2023

This is slower than the 7.6% YoY forecast this year.

Consumer spending in the Philippines is expected to increase by 5.5% year-on-year (YoY) in 2023, down from the 7.6% growth forecast for 2022, according to Fitch Solutions.

In a report, Fitch said household spending is expected to “outpace” consumer price inflation next year, which will guarantee real income growth and greater potential for consumer spending.

“However, inflation is likely to remain elevated, and we expect the central bank to tighten monetary policy further in an attempt to maintain control,” it said.

READ MORE: Philippines foodservice profit sector to grow by 17.5% through 2026

Consumer confidence in the country remained negative at -12.9 in September 2022 but has since increased since the -54.5% reported in the third quarter of 2022. Retail sales growth is still sluggish since the pandemic but it is improving.

Fitch noted that there are some risks to the forecast which are the potential reimplementation of restrictions due to the pandemic and increased volatility in energy prices due to an escalation of the Russia-Ukraine war.