Private consumption in the Philippines is expected to remain muted this year, among the lowest in Asia-Pacific, as new COVID-19 variants and slow vaccination continue to pose risks on spending.
UK-based Oxford Economics said consumption may rebound this year, but the pace of growth would vary across economies.
Household consumption in the Philippines, which accounts for 70 percent of gross domestic product, dipped by 4.8 percent in the first quarter amid low incomes as the unemployment rate remains high.
The release of pent-up demand may only happen in the second half or beyond following the recent reimposition of quarantine restrictions due to rising COVID cases, the report said.
The country’s road to economic recovery greatly hinges on improved consumer spending, and boosting confidence depends on people being allowed to safely go out.
Consumption in the country is only seen growing three percent for 2021.