Globe Telecom Inc. on Friday said it is optimistic about its business outlook in the second half of the year due to the continued downtrend in inflation, which could potentially improve the purchasing power of Filipino consumers.
“The business is doing well. We saw a slight uptick in demand around May this year that seems to have continued on in June. We’re very happy about that,” Globe Group president and chief executive Ernest Cu said in a statement.
Cu said the current business situation may eventually lead to more positive results for the business.
“Of course, inflation has been affecting the lower end of our market, which is the biggest segment of the population in the Philippines. But I’m hopeful with the signs we’re seeing with inflation now going below 6 percent. This will show good results for us in the latter half of the year,” he said.
Due to the aggressive tightening cycle by the Bangko Sentral ng Pilipinas and the non-monetary policy measures implemented by the national government, inflation cooled to a 12-month low of 6.1 percent in May from 6.6 percent in April.
However, the 7.5 percent average from January to May remains well above the 2-4 percent target range set by the central bank.
BSP now expects inflation to average 5.5 percent instead of 6 percent this year and 2.8 percent instead of 2.9 percent next year. It has also raised key policy rates by 425 basis points since May last year but decided to keep interest rates steady last May 18, 2023 due to an inflation downtrend.
