If there is one country in south-east Asia that is not unduly concerned about the US-China trade war, it is the Philippines, where domestic consumption remains the key engine of growth. The country’s households traditionally account for two-thirds of aggregate expenditure. Exports of goods and services amount to about 30% of gross domestic product (GDP), compared with 176% in Singapore and 68% in Thailand, according to World Bank figures.
And in the Philippines, unlike rapidly greying Singapore and Thailand, demographics look good for future consumption-driven growth. The average age of the country’s 108 million population is 23. Annual per capita income recently passed the $3000 mark, deemed a tipping point for consumption booms, while household debt is low, at about 10% of GDP. Understandably, Philippine banks are looking to their own market for future expansion.
