Spending seen directed to more value-added items amid luxury slump

ECONOMY SECRETARY Arsenio M. Balisacan said the slowdown in luxury spending due to the public works corruption scandal could mean that consumption will be redirected to locally sourced goods and services.

- 

“1 like that there’s a slowdown in those areas because these are very import-dependent anyway. The value added is low,” he told reporters on the sidelines of an event on Oct. 16.

Luxury spending at any rate does not generate much economic activity.

“If our consumers are shifting to locally produced goods that are not as luxurious, then it creates more economic activity,” he added.

Foundation for Economic Freedom President Calixto V. Chikiamco said sales of luxury or ultrahigh-end condominiums are slowing down, indicating a dampening mood in the entire luxury sector.