Such fourth quarter spending and activities will boost the Philippine economy no doubt, especially toward the end of the year when 13th month pays and bonuses are released to our workers.
In such a short time, Mr. Marcos has inspired confidence among foreign and local investors by visiting the United States and Singapore, and underscoring infrastructure development as a top priority of his administration. Imports are at an all-time high—an indication that factories operate at a higher capacity and require more raw materials and inputs for production. Filipino consumers are buying big items such as vehicles again, thanks to banks that are ready to lend at low interest rates despite the threat of an elevated inflation.
The peso’s recent drop, meanwhile, is temporary. I expect the local currency to recover in the fourth quarter, normally a strong season for remittances. I am optimistic about the fourth quarter not only because of remittance growth, but also because of the enhanced mobility that allowed hotels, resorts and airlines to increase their operations and employ more workers.