ABOITIZ Equity Ventures, Inc. (AEV) expects a slowdown for some business sectors this year due to higher interest rates, a company official said on Monday.
“For 2023, we expect a slowdown as a result of higher interest rates and the inflationary pressures that we have been experiencing since last year,“ Jose Emmanuel U. Hilado, AEV’s senior vice president, said in a press briefing.
“Some sectors have slowed down like the real estate sector has been slowing down because of higher interest rates,” said Mr. Hilado, who is also the listed firm’s chief financial officer and corporate information officer.
As a result, there were lower construction activities and lower demand for personnel, he said.
“Despite the slowdown in [the] economy, we think that there are still a lot of investment opportunities in the country, and we will continue to invest in almost all of our current businesses,” he added.
The company recently disclosed its capital expenditures (capex) for the year at P78 billion to drive investments and innovations.
For the year, P32 billion will go to Aboitiz InfraCapital, Inc.; P5 billion to Union Bank of the Philippines; P5 billion will to its food and agribusiness; and P3 billion to property unit Aboitiz Land, Inc.
Mr. Hilado said that capex for its power unit Aboitiz Power Corp. would amount to about P30 billion as it develops its renewable energy business.
He said that while the country expects an economic slowdown during the year, the company remains to be on the lookout for possible opportunities and new investments.
AEV shares increased by 1.92% or P1 to close at P53 each on Monday. — Adrian H. Halili