Economic Worries Loom in the Philippines: Inflation and Income Concerns for 2024

In the Philippines, both businesses and households are facing concerns for 2024, primarily due to expectations of continued high inflation and apprehensions about lower income. These findings emerge from the latest quarterly surveys conducted by the Bangko Sentral ng Pilipinas, which include the Business Expectations Survey (BES) and the Consumer Expectations Survey (CES).

Business optimism for the first quarter of 2024 has declined, with the confidence index dropping to 38.2 percent from the previous 53.8 percent. This decrease in optimism is attributed to anticipated declines in consumer spending post-holiday season, adverse effects of global conflicts on supply chains, high inflation, and rising interest rates. Consumer confidence also mirrors this trend, with a less buoyant outlook for the next three months and the next 12 months. Households are expecting higher inflation, lower income, and fewer job opportunities, adding to their concerns for the coming year​​.