Analyst – Easing inflation led to improvement in consumer confidence | ANC



a resurgence and consumer spending and a recovery in investments led by the Business Process Outsourcing sector these are widely seen shielding the Philippine economy from the ill effects of a reenacted budget as the impasse drags on with local lawmakers still trading barbs over alleged realignments in the measure first Metro investments which sees the country growing 6.8% in 2019 says easing inflation pressures have led to an improvement in consumer confidence the company's head of research Christina Allah explains this is evident in the rising take-up for consumer loans election spending also widely expected to boost domestic consumption along with the falling cost of borrowing as the market expects monetary policy easing from the Central Bank it might be more realistic to look at other sources of growth aside from the fiscal space and very very keen on the Consumer Expenditure how it's going to play out this year considering that inflation expectations have eased and our inflation numbers have also improved lula expects government spending to go back to ten percent of gross domestic product from 2018 12 percent if the budget impasse drags on for the whole year but she says aside from a more vibrant consumer sector investments will also get a leg up from what she describes as a revival of the local BPO sector aside from the fact that the fiscal lever is weak we might be seeing also some revival in the BPO because the corporate taxation that was supposed to be slapped on them might not come true that is that is one of the widely expected development on the ground along says property consultancy firms are reporting a surgeon BPO office take ups in recent months case in point BPO companies are seeing to generate up to 150,000 jobs this year as they get more clients from large startup companies in fact one global startup alone is in need of 800 agents by June before there are fast-paced you know fast grooving high-tech companies who are averse to outsourcing before but now realize that you know it is the way to go and that there's so much value in bringing in outsourcers as well the BPO sector employs around 1.4 million Filipinos or 3% of the total active workers in the country Bruce Rodriguez abs-cbn News you

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