ATR Asset Management Group (ATRAM Group) expects the economy to stay strong this year as inflation continues to slow, but weak external demand could pose downside risks to growth.
“Looking ahead, we anticipate a dynamic economic environment in 2025, with both opportunities and challenges shaping the investment landscape. While disinflation is expected to continue through the middle of the year, benefiting from lower rice prices and a more stable energy market, potential threats to external demand could still slow economic growth,” ATRAM Chief Investment Officer Alessandra P. Araullo said in a statement on Thursday.
The Philippine economy grew by 5.6% in 2024, missing the government’s 6-6.5% full-year target due to weak global demand, typhoons, and geopolitical tensions.
Still, this was slightly higher than the 5.5% expansion in 2023.
For this year, the government targets gross domestic product (GDP) growth of 6-8%.
Meanwhile, Philippine headline inflation stood at 2.9% year on year in January, steady from the December print and well within the Bangko Sentral ng Pilipinas’ (BSP) 2-4% annual target.
The BSP on Thursday said inflation could rise anew in the second half of the year due to base effects, with potential upside pressures coming from the utilities sector and the lagged impact of minimum wage increases implemented last year.
“ATRAM forecasts a stronger Philippine peso by mid-2025 as interest rate cuts push foreign capital flows back to emerging markets. The firm also expects a steeper yield curve as monetary policy eases, inflation expectations rise, and bond supply increases, placing upward pressure on longer-term yields,” it added.
ATRAM’s assets under management (AUM) stood at P363 billion as of end-December, the company said.
“ATRAM’s strategic focus for the past years on feeder funds has resulted in an impressive 48% market share in the country, demonstrating its ability to anticipate market needs and provide innovative solutions,” it said.
“Our long-standing commitment to fund management and access to diverse financial markets enable us to deliver superior investment performance. Our disciplined investment and fund selection process, underpinned by in-house research capabilities and understanding of our clients’ distinctive needs, profiles, and financial goals, ensure that we offer the best investment solution and continuously adapt to changing market conditions, achieving the best possible outcomes for our investors,” Ms. Araullo added. — AMCS
