Consumption in the Philippines is only seen growing 3% in 2021, the same as South Korea and just slightly above Japan’s 2%.
In Southeast Asia, however, it is much slower than Singapore and Malaysia’s 7.5% and Indonesia and Thailand’s 4%.
China’s private consumption growth tops the region at 9.5% amid contained COVID-19 cases, growing incomes, and improved consumer confidence as its economy recovers.
Oxford economists said savings rates would also decline, driven by pent-up demand, supported by pickups in employment, income, and vaccinations.
Still, the pace of rising consumption will vary across economies, depending on income growth, savings and the health situation.
Household savings rate or the percentage of personal disposable income in the Philippines is expected to be the lowest in Asia-Pacific at five percent for 2021. This is lower than the 2020 level of 7% and the pre-pandemic level of 10%.