Asean outlier: PH credit growth improving

FILE PHOTO: Makati Skyline. INQUIRER/GRIG C. MONTEGRANDE

Credit growth trend in the Philippines has changed for the better, becoming the country with the most optimistic position among four of its peers in the Association of Southeast Asian Nations (Asean).

For the next quarter or two, credit trend has been “improving” compared with the “declining” trend seen previously, according to the Bank of America November outlook released on Tuesday.

The report took into consideration five credit growth indicators: system liquidity, business and retail expectations, rates and prices, as well as a range of external factors.

READ: PH GDP growth slowed sharply to 5.2% in Q3

“The Philippines is the only country within Asean showing an ‘improving’ trend—[and] has seen a faster recovery in credit growth to 9 to 10 percent and the latest reading of the indicator implies slight improvement from current levels,” the report said.

On the other hand, Singapore and Thailand showed a flat credit outlook in the report, while in Malaysia and Indonesia, credit trend was described as “declining.”

The report said that the change in the Philippines’ directional trend was due to the increase seen in import growth and net sales index, but partially offset by lower auto sales.

The latest preliminary data from the Philippine Statistics Authority released a week earlier showed that the total value of imported goods in September had expanded by 9.9 percent to $11.34 billion from $10.32 billion a year ago. This led to a 0.6-percent rise in the country’s total import value from January to September to $95.07 billion.

Meanwhile, the latest industry sales data from the Chamber of Automotive Manufacturers of the Philippines, Inc. and the Truck Manufacturers Association indicated that local dealers had sold 39,542 units of vehicles in September, slightly more than the 38,628 units sold in the same month last year.

The September posting brought the year-to-date vehicle sales in the Philippines to 344,307 units, indicating a 9.4 percent growth from the past year. INQ