Consumer loans grew faster in ’12
By Michelle V. Remo
Housing, auto and credit card loans grew by a faster pace in 2012, helping boost consumer spending that, in turn, aided the economy’s expansion.
Housing, auto and credit card loans grew by a faster pace in 2012, helping boost consumer spending that, in turn, aided the economy’s expansion.
Consumption by Filipino households is expected to remain robust in 2013 despite the dampening effects of the peso strengthening on the value of foreign exchange remittances.
Consumer spending on basic grocery items are likely to remain stable in the next six months in greater Metro Manila, but there may be budget cutbacks on discretionary items like alcoholic beverage, snack foods, new cell phone units, a recent consumer study by Citigroup suggested.
Domestic credit, or the outstanding loans from banks and other lending institutions in the country, posted a double-digit increase in the first quarter as appetite for spending and investments boosted demand for loans.
Americans are beginning to feel more confident about the U.S. economy just as the all-important Christmas shopping season begins. But their optimism may be short-lived.
Remittances, which have consistently grown despite challenges confronting the global economy, are expected to eventually plateau and cause consumer spending to slow down. Given this projected scenario, the government is urged to intensify efforts to boost investments so that the economy would still expand even without the same level of support from household consumption. Aurelio [...]
