Industry experts are of the opinion that economic growth in the Philippines will be driven by consumer demand for a sustained period and there will be an increase in the consumption of automobiles and durable goods.
The chief operating officer and vice-chairman of KPMG R.G. Manabat & Co., Emmanuel P. Bonoan, was reported saying that they were very positive about the dynamic economic growth as seen across various consumption classes including household products and automobiles. At the same time, Bonoan believes that stringent government regulations like the changes made to the VAT reform could interfere with consumer demand. The dip, however, might not last for an extended period of time. Bonoan also said that there will be a drop in remittances only if the hiring of locals for overseas jobs slows down.
According to Roberto G. Manabat, CEO and Chairman of KPMG, the continued growth of the country’s BPO services sector is a big factor in fueling consumption. He went on to dismiss the possibility that American companies might put a halt to their outsourcing operations since the newly elected President is determined to ban the outsourcing of jobs from the U.S.