THE MARKET CALL (FEBRUARY 2018)
Here are the highlights of the February issue:
Macroeconomy
We believe the PH is geared towards a faster expansion and 2018 onwards with robust domestic demand as the main driver. The external environment, especially with the recovery in US, EU, Japan, and China, should further boost the country’s export and fuel economic expansion. Moreover, we think that inflation will accelerate in H1 but will start to decelerate thereafter as food and crude oil prices normalize. Finally, the peso will again be generally under pressure in 2018 as PH trade deficits bloat with elevated investment spending and renewed strength of the US economy at the back of the massive Trump tax cuts.