The Market Call | August 2020

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Macroeconomy The PH economy will likely improve in Q4 as relaxation of strict quarantine measures kick in by mid-August. Month-on-month (m-o-m) pluses surfaced for manufacturing, capital goods imports, exports and construction, and should gain traction for the rest of the year. OFW remittances returned to positive growth in June. NG spending will increase especially for infrastructure and health. The Philippine... Read More

The Market Call | July 2020

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Macroeconomy Despite gradual relaxation of quarantine restrictions, Bangko Sentral ng Pilipinas’ (BSP) past moves to infuse more liquidity into the banking sector (and more bank lending) allow more gains in manufacturing and construction production as evidenced by the acceleration in PMI. NG spending should also pick up pace starting Q3 with available financing and the likely approval of its P1.3-T... Read More

The Market Call | February 2020

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Macroeconomy The PH economy’s return to fast growth in H2-2020 should be supported by resurgent domestic demand, infrastructure and consumption. COVID-19 and Taal volcano eruption will negatively impact growth especially in Q1. Higher residential and construction of various PPP projects, along with the improvement in manufacturing activities and strong NG spending, should provide the added impetus. Fixed-Income Market BSP’s policy... Read More

The Market Call | January 2020

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Macroeconomy GDP growth accelerated to 6.4% in Q4, due to robust government and infrastructure spending and softer inflation. These same factors, along with a low base and positive employment print, should sustain faster growth in 2020. Robust residential and commercial building demand and the various Private-Public Partnership (PPP) projects should also further stoke investment demand. Inflation will likely stay within... Read More

The Market Call | December 2019

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Macroeconomy Recent economic indicators point to a stronger Q4 and on 2020, with positive employment print and poverty data indicating better investment numbers for the last quarter of 2019. Household consumption would still benefit from this, softer inflation (on average) and low interest rates. The National Government (NG) will continue to ramp up infrastructure spending amidst the still-large fiscal space.... Read More