German biz PH outlook in next 12 months remains optimistic

By Kris Crismundo

June 6, 2024, 6:45 pm

<p><em>(Courtesy of GPCCI)</em></p>

(Courtesy of GPCCI)

MANILA – German businesses based in the Philippines have a positive outlook in terms of their development, investments, hiring, and the country's economic growth within a year.

The AHK World Business Outlook Survey Spring 2024 released on Thursday showed that 61 percent of the surveyed firms expect business conditions in the Philippines would be better in the next 12 months.

About 38 percent said business development over a year would be "about equal," with only 3 percent saying it would be worse.

More German firms expect that the Philippine economy would improve in the next 12 months at 55 percent, the highest since the last four surveys.

They are also optimistic about their investments and employment outlook over the next 12 months at 44 and 61 percent, respectively, for the Spring 2024 survey, which were higher than the Fall 2023 survey results of 39 and 54 percent, respectively.

Compared to its ASEAN neighbors where the survey was also conducted such as Malaysia, Singapore, Thailand, and Vietnam, the Philippines is leading these countries in terms of current business situation, expectations, local economic expectations, investment, and employment.

“The survey's findings underscore generally positive economic expectations for the Philippines, especially when compared to its ASEAN neighbors and global counterparts,” German-Philippines Chamber of Commerce and Industry (GPCCI) executive director Christopher Zimmer said. "Nevertheless, addressing key concerns is essential to maintaining and enhancing the country's competitiveness.”

Meanwhile, when asked about the risks German firms see in the Philippines in the next 12 months, the top headwinds in their businesses include economic policy conditions, prices of energy, and supply chain disruptions.

"We hope the government will prioritize the completion of promised infrastructure projects, tackle high energy costs, and promote ease of doing business, we also hope that these issues will be addressed by the President during his next State of the Nation Address.” GPCCI president Marie Antoniette Mariano said.

"These measures are crucial to capitalize on the positive momentum identified by companies involved in German-Philippine business relations. GPCCI continues to develop partnerships with the Philippine government to further address these concerns, and our chamber is open to collaborating with more government stakeholders,” Mariano added.

German firms here also see global geopolitical tensions that could possibly affect their businesses in the country, wherein they are most concerned about the China-Philippines issue, while also concerned about the tensions between China and Taiwan, Ukraine and Russia, and the Israel-Gaza tension. (PNA)