Citi, the country’s leading foreign bank, remains positive in its economic outlook for the Philippines in 2016, despite the volatility in the key global markets and the upcoming presidential elections in the country.
This was revealed during the exclusive Citigold 2016 Annual Outlook event, where Citi’s wealth management clients gained insights from Citi’s global and regional experts.
Aftab Ahmed, Citi Philippines CEO, articulated the bank’s bullish perspective on the country’s prospects in his opening speech: “The Philippines has a strong macro scorecard—strong growth, a current account surplus and a currency that continues to hold its value.
We remain very optimistic about the Philippines and are highly focused in growing our franchise.”
Ramon Tejero, investment product head of Citicorp Financial Services and Insurance Brokerage Philippines Inc., served as the headline speaker, while Martin Ledesma, Citi-AIA partnership head, was also present to provide additional insights and strategies.
Tejero indicated that growth for the Philippines in 2016 is projected at 5.4 percent, slightly lower than the 5.8-percent figure posted in 2015. “This slower growth can be attributed to the further deterioration of the macro picture globally,” Tejero said, “but this is temporary and should improve by next year.”
Even with slower inflows from the Middle East, caused in large part by the slump in fuel prices, Tejero still sees overseas Filipino workers (OFW) remittances as the main growth driver of the economy. “The decline in Middle East remittances will be tempered by contributions from ocean-based OFWs—those working in cruise ships for example—as well as those working in Southeast Asia, which has largely been insulated,” he said.
He also pointed out the business-process outsourcing sector as another bright spot, with $19 billion in expected foreign exchange revenues entering the national economy.
As to the over-all wait-and-see attitude in view of the forthcoming elections, Tejero allayed fears on the results. “Studying the last four administrations, stock markets were [already] up 12 months after each presidential election,” he enthused. “Generally, people hate uncertainty, and as soon as the economic policies of the new government are in place, opportunities arise.”
Meanwhile, in line with this outlook, Martin Ledesma presented a number of insurance products as risk management and alternative investment options available to Citigold clients.
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