PH consumer demand to stay resilient in 2026

Staying Resilient Filipino Consumer Demand in 2026

As we enter 2026, it's crucial to understand the key drivers behind Philippine consumer demand. According to Maybank IBG Research, Filipino consumers will continue to play a vital role in the economy, fueled by steady remittances and easing cost pressures.

Sustained Growth in OFW Remittances A Primary Driver of Household Income

Maybank highlights sustained growth in Overseas Filipino Worker (OFW) remittances as one of the primary drivers of household income and consumption. This trend is expected to continue, with remittances remaining a key pillar of private consumption.

BPO Expansion and Government Spending Reallocation Supportive Factors for Demand

The research firm also points to the expansion of the Business Process Outsourcing (BPO) industry and a shift in government spending priorities as supportive factors for demand. The reallocation of budgetary resources toward social services and direct assistance will provide an incremental boost to consumption, particularly at the mass-market level.

Benign Inflation Environment Preserving Real Purchasing Power

Maybank notes that prices of essential goods have generally trended lower through 2025, preserving real purchasing power and underpinning consumer demand. This benign inflation environment bodes well for Filipino consumers.

Improved Consumer Sentiment A Positive Trend

The research firm highlights improved consumer sentiment amid lower inflation and rising income expectations. The overall consumer confidence index has improved to -9.8 percent in the third quarter from -14.0 percent in the previous quarter, reflecting fewer pessimistic households and more optimism about income, job prospects, and economic conditions.

Remittances A Key Pillar of Private Consumption

Maybank emphasizes that remittances will remain a crucial driver of private consumption in 2026. Data from the Bangko Sentral ng Pilipinas shows personal remittances rose 3.0 percent to $3.52 billion, with cash remittances totaling $3.17 billion.

Mitigating Risks A Prudent Approach

While potential risks exist, such as tighter United States immigration policies and proposed taxes on remittances, Maybank notes that the impact may be limited. The proposed 1-percent tax on remittances from US-based OFWs could be easily avoided using digital payment methods, making it a temporary risk.

Conclusion A Resilient Outlook

In conclusion, Filipino consumer demand will remain resilient in 2026, driven by sustained growth in OFW remittances, BPO expansion, and a benign inflation environment. Improved consumer sentiment and government spending reallocation will also support demand. By mitigating potential risks through careful planning, the outlook for Filipino consumers appears promising.

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Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.