[B-SIDE Podcast] Filipino consumer sentiment and economic headwinds
Follow us on Spotify聽
Filipino consumers are seen to be ‘cautiously optimistic’ this year as they face persistently high inflation and a looming global recession, but are also banking on higher incomes due to eased mobility restrictions.
In this B-Side episode, Amrita Mitra, chief operating officer of TransUnion Philippines, talks to 大象传媒 reporter Luisa Maria Jacinta C. Jocson about consumer sentiment in the Philippines amid the reopening of the economy and high inflation.
鈥淭here is a dichotomy in the consumer sentiment in the Philippines. On one side, there is an element of being able to spend, getting higher incomes with the entire phase of the lockdown being lifted, so there鈥檚 kind of a bullish positive sentiment. However, with rising interest rates and inflation, there is also a cautiousness to this optimism,鈥 Ms. Mitra said.
Ms. Mitra said Filipinos are excited to spend but conscious that the economy may falter later in the year.
Nearly 80% of Filipinos anticipate an increase in their incomes this year, and around 60% expect that they will able to settle their bills, debts, and other obligations, according to TransUnion鈥檚 recent consumer sentiment report.
Almost half or 42% of consumers expect the Philippines to go into a recession. 鈥淏ut the experience or what they’re seeing in terms of raised income and increased spending is leading to the mixed sentiment,鈥 Ms. Mitra said.
Sticky inflation and rising interest rates have also become a top concern for Filipino consumers.
鈥淭his has been a consistent concern. Around 82% claim they are concerned about rising inflation. This is closely followed by rising interest rates, how it impacts their ability to save, pick up new loans, pay off existing loans, and how easy or difficult it will be to for non-financial sectors to access credit,鈥 Ms. Mitra said.
Ms. Mitra also discussed the importance of instilling financial awareness and literacy in Filipinos.
鈥淲hat鈥檚 your spending capacity? How much do you need to save? These points become important as Filipinos go about their daily to avoid the pitfall of spending or borrowing more than they can afford,鈥 she said.
Recorded remotely on Feb. 24, 2023.
Follow us on Spotify聽
