After a rocky economic ride in 2018 with exorbitantly high levels of inflation, the Philippines faces an uncertain year ahead. The economic outlook for 2019 has prompted mixed views with some commentators predicting that growth will fall short of government targets. Will this signal a return to high inflation and dent spending power? How will the dependents of OFWs (Overseas Filipino Workers) manage if the cost of day-to-day essentials takes ever-larger amounts from their remittance lifelines?
Inflation has certainly eroded some types of consumer spending in recent months, but everyday expenses such as food and housing are not things that can simply be given up in hard times. However, on the plus side, the decline in the value of the peso has partly offset inflation, enabling OFWs to take advantage of favourable exchange rates to send more money home.