Investing in 2021

After the country was hit by recession in Q2 of 2020, financial experts are weathering the storm and chiming in their foresights for a hopeful new year

- Franz Sorilla IV

With the fate of the Philippine economy still dependent on the Covid-19 pandemic situation, the confidence of investors and businesspeople continues to vacillate. As earlier predicted, the economy plunged into a recession last April to June, with 16.5 per cent drop in GDP. Still, some industry experts are positive, seeing silver linings in several sectors that have experienced a growth spurt largely because of the changes in consumer lifestyle.

As we brace ourselves for another year, the big question remains: is it still safe to invest in 2021? Which sectors can we rest our confidence in?

Businessman David O Chua, president of Cathay Pacific Steel Corporation and vice chairman of the University of the East, expects a flat growth rate for 2021 as the economy, he believes, will still be recuperating from the months-long lockdown. But he observed some sectors that continued to do brisk business during this crisis. They include the digital sectors (internet and online service providers, fintech firms, last-mile delivery providers), logistics and warehouse companies and telecommunication firms.

Rick Santos, CEO of Santos Knight Frank, is optimistic that with the continuous partnership of the private sector and the government, the economy would be revitalised. Though badly hit, the tourism, leisure and hospitality industries are seeing an increase in volumes of deals, according to Santos.