Thinking 10X
It has become an adjective and a verb. It is the idea of exponential thinking. Imagine if you can 10X your investing IQ, and, of course, your wealth.
In this issue, we hope to get you a bit closer to 10X knowledge and wealth as we deliver our insights on Philippine Offshore Gaming Operators (POGOs) and the real estate sector, government remedies against inflation, and investment ideas in this economic milieu.
Head over to www.wealthinsights.ph for more insights.
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You're in good hands.
Metrobank Wealth Insights Team
Effect of POGOs on the property sector overblown
The recent announcement of a complete ban on Philippine Offshore Gaming Operators (POGOs) by President Marcos Jr. has sent ripples through the property sector. However, a closer examination reveals that its impact may be less significant than the market’s initial reaction suggests.
POGO occupancy in Metro Manila has already seen a substantial decline, dropping from 11% in 2020 to just 3.5% as of July 2024. This gradual reduction indicates that the market has been adapting to decreased POGO presence over time, softening the blow of an outright ban.
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Inflation expected to decline due to government remedies
Headline inflation may fall within target again in July, reaching 3.8%, with price pressures fading at a more favorable pace to start the second half of the year. Earlier in the year, the Bangko Sentral ng Pilipinas (BSP) had forecast inflation to potentially breach the upper end of the inflation target.
However, receding risks from the El Niño weather phenomenon plus improved supply dynamics due to government remedies should keep price pressures at bay. The reduction in tariff for imported rice and the extension of an executive order lowering tariffs for important food commodities are some examples of such supply side remedies.
Radar Report: BSP expected to cut rates amid cooling inflation
The Philippine economy is showing signs of stabilization, with headline inflation settling at 3.7% year-on-year in June, within the central bank's target range. We forecast full-year inflation at 3.3%, prompted by expectations of monetary policy easing.
We foresee the Bangko Sentral ng Pilipinas (BSP) implementing three 25-basis point rate cuts in August, October, and December, bringing the policy rate down to 5.75% by year-end. This shift comes as BSP Governor Eli Remolona signals a more dovish stance, emphasizing the need for timely action to prevent output loss.
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Copywriter & Content Writer | Full Stack Marketer | Aspiring Physical Therapist
2moSolid 10X PH economy. Investing in your health and wealth is indeed a must! Appreciate this article 💯
Sales And Marketing Specialist at Shopify
4moGood to know!