German businesses in the Philippines turned more optimistic over the economy, investments and employment, results of the outcome of the Spring 2024 AHK World Business Outlook Survey showed when compared to the results of the fall edition of the report released late 2023.
However, the proportion of businesses who said their situation will be better over the next 12 months was unchanged at 50 percent.
About 61 percent had higher expectations, slightly lower from 68 percent in the previous survey.
About 55 percent of the respondents expect a better economy, 17-percentage points higher compared to just 38 percent in the previous survey. Forty-four percent said they expect higher investments, up from 39 percent previously.
Sixty-one percent see higher employment, from 54 percent in the last report.
Respondents identified key risks that could impact future economic growth: economic policy conditions, high energy prices, and challenges related to supply chain disruptions and infrastructure.
In this survey, additional questions on diversification measures of companies were incorporated to which respondents reported they have expanded their supplier networks and exploring new sales markets to mitigate the risks of future disruptions.
Diversification, however, is challenged by increased legal and regulatory issues, difficulties in finding suitable suppliers or business partners, and the high costs associated with expanding business operations.
More than half (55 percent) believe they are only averagely prepared to tackle international crises and geopolitical risks,, indicating a moderate level of resilience, while only 34 percent consider their readiness as good.
“To capitalize on the current economic optimism, it’s imperative that the Philippine government work closely with businesses to resolve these identified challenges,” said Marian Norbert Majer, German Chamber of Commerce of the Philippines Inc. (GCCPI) board director and policy and advocacy chairperson. “Addressing these issues can help create a more predictable and favorable business environment and ensure that this bullish momentum translates into substantial outcomes that will help the Philippines attain its sustained economic growth.”
The AHK World Business Outlook Spring 2024 Survey in the Philippines was initiated by GPCCI and is participated almost 70 companies related to German-Philippines business relations.
