SM: Still plenty of room for growth in 2024

The groundswell of watchful optimism persists in 2024, and one of the country's leading conglomerates maintains that there is still room for T growth.

SM Investments Corporation says the Philippines has been consistently positive in terms of consumer growth.

"If you look back at the historical performance of the Philippine economy, even during the height of the Asian crisis, household consumption in the Philippines has been quite resilient, primarily driving sustained economic growth," SM Investments President and Chief CEO Frederic C. DyBuncio said.

Discretionary spending in key categories such as fashion, food and beverage as well as entertainment, among others, is buoying consumption activity.

As of the first nine months of 2023, retail net income grew by 19%, driven by growth in Non-Food discretionary categories sales, both in SM Store and Specialty Stores.

"Overall, we are positive about our retail business, and we continue to be mindful of our customers' needs as we offer choices that can match the size of their wallets," DyBuncio said.

Substantial remittances from Overseas Filipino Workers (OFWs) are also supporting growth. Latest data from the Bangko Sentral ng Pilipinas indicated that cumulative personal remittances grew by 2.9 percent to US$33.6 billion in the first eleven months of 2023.

"The continued growth of OFW remittances supports the consumption story of the Philippines," he said.