GERMAN businesses operating in the Philippines expressed confidence in their prospects over the next 12 months, according to a survey conducted by the German-Philippine Chamber of Commerce and Industry (GPCCI).
On Monday, the GPCCI released its Spring 2023 AHK World Business Outlook Survey, which indicated that 74% of German businesses in the Philippines are optimistic about their prospects in the next 12 months.
A year earlier, the share of German businesses expressing optimism was 55%.
The GPCCI survey also indicated that 46% of German businesses plan to invest more in the Philippines during the next 12 months, against 44% intending to do so a year earlier.
“Our recent survey shows the bullish business interest of German businesses in the Philippines,” GPCCI Executive Director Christopher Zimmer said in a statement on Monday.
“We are excited about more developments soon as we promote the Philippines to more German businesses in our activities this year such as Trade Secretary Alfredo E. Pascual’s visit to Germany in July, upcoming business delegations, and our flagship event Mabuhay Germany,” he added.
The survey found that 62% of German businesses described their business situation as improved, against 47% a year earlier.
In addition, the survey also found that 54% of participating companies expect Philippine economic conditions to improve in the next 12 months, up from 41% a year earlier.
“The positive outlook of companies engaged in German-Philippine economic relations is attributable to the recent activities of the Philippine government in the European Union,” GPCCI President Stefan Schmitz said.
“We urge the government to capitalize on this positive momentum, as it can generate renewed interest in the Philippine market, given the country’s ongoing economic development,” he added.
The GPCCI’s survey also showed that 50% of German businesses plan to hire more employees in the next 12 months, compared to 46% in the previous survey.
“We are pleased to announce that the Philippines has achieved exceptional results in the Spring 2023 survey, leading among its neighboring countries in the ASEAN region,” GPCCI Director and Policy and Advocacy Chairperson Marian Norbert Majer said.
“This is a testament to the concerted efforts of the government, private sector, and the Filipino people to enhance the business environment. However, we urge the government to take action on the challenges identified by participating companies, particularly in the area of human capital development, given that it is the country’s most valuable resource,” he added.
The GPCCI said the top three risks as viewed by German companies in the survey were the lack of skilled workers (44%), supply chain disruptions (39%), and economic policy conditions (35%). — Revin Mikhael D. Ochave