Amid the headwinds being experienced by the local and global economies, Sun Life Investment Management and Trust Corporation (SLIMTC) continues to maintain a positive outlook for the Philippines.
This was the tone set by SLIMTC President and Chief Investment Officer Michael Enriquez during a recent media conference.
Enriquez acknowledged the various factors affecting the economy, including rising fuel prices brought about by the prolonged Russia-Ukraine war, increasing interest rates, and prevailing negative sentiment in financial markets.
“We remain confident about the prospects of the Philippines given the reopening of the economy since the first quarter of 2022,” Enriquez said, projecting a GDP 8.2% this 2022.
“The expected growth in GDP is driven primarily by domestic consumption, as more Filipinos have been going out and spending. In fact, mall traffic is now back at pre-pandemic levels. With this, the forecasted GDP growth was higher than developed markets.”
However, several downside risks are also anticipated as inflation continues to be elevated. The ongoing Russia-Ukraine tensions remain a critical factor, with the elevating global inflation, driving further increases in interest rates. Other risks include a resurgence of COVID-19 also infections which can tighten mobility restrictions.
“Despite all these, we still see opportunities in both global and local equities moving forward,” Enriquez said.
“Sustained consumer demand and confidence contribute to the continued growth of corporate earnings. And with the Philippine Stock Exchange trading below its five year average PE multiple, there are certainly opportunities for long-term equity investing.”