Citi is bullish on sustained growth of PH economy

Even with the volatility of the current global market, Citi, one of the premier foreign banks in the country, remains positive about the economic growth in the Philippines.

The global market has been marred by rising interest rates, potential trade wars, and geo-political tensions, causing its recent volatility. In spite of this, Ramon Tejero, Citicorp Financial Services and Insurance Brokerage, Inc. (CFSI), says that according to market data, the country is experiencing the second longest and third strongest equity bull market since 1970. “Despite market concerns, there appears to be opportunities in technology, financials, healthcare, and industrials due to continued earnings growth in these sectors,” said Tejero.

This insight, including other expert views on the current market environment and implications for investment strategy, were shared by Citi and several guest speakers in a series of mid-year outlook events organized by the bank for their Citigold clients.

“Citigold clients look for trusted advice and up-to-date information, especially during times of market volatility,” said Manoj Varma, Citi’s consumer banking head. The session was opened by Varma, who explained the significance of an understanding of the risks and opportunities that go hand in hand with investing.

Citi is confident that the Philippine’s economic growth momentum will be sustained in the coming years, where the primary source of growth will come from the infrastructure programs of the government. According to Citi forecasts, GDP will grow by 6.8% in 2018, and 6.7% in 2019.

Despite this bullish outlook, business and consumers show cautious optimism on the back of ongoing inflation concerns. For 2018, Citi expects inflation to top 5.3% in Q3 before declining to below 5.0% in Q4. Tejeros mentions that investors “can focus on diversification across asset classes and geographies and income themes, while watching out for tactical opportunities.”

via Manila Bulletin