The Manila Times

German firms optimistic on PH business prospects

ANNA LEAH GONZALES

GERMAN firms continue to be optimistic about business prospects in the Philippines, results of a survey conducted by the German-Philippine Chamber of Commerce and Industry (GPCCI) showed.

Results of the AHK World Business Outlook Survey released on Wednesday showed that 47 percent of the respondents are currently in a better business situation while 43 percent remain in a satisfactory situation.

The AHK WBO Survey initiated by the GPCCI was participated by 87 companies related to the GermanPhilippine relations. Of the total, 31 percent are from the manufacturing industry and construction, 18 percent from trade and 50 percent from services.

Survey results showed that 55 percent of the respondents are expecting a better business outlook in the next 12 months while 51 percent expect that the local economic development of the country will remain stagnant.

In addition, 41 percent of the respondents are expecting local economic improvements in the next 12 months.

The survey also revealed that 44 percent of the respondents are anticipating investment developments in the next 12 months.

In terms of employment, 48 percent of the respondents will retain the same number of employees in their workforce.

However, 46 percent of the respondents are planning to increase their employment in the next 12 months.

“The improving situation of the pandemic in the Philippines is evident with the low case reports and relaxed business restrictions, this is felt by the German business community in the country,” said GPCCI Executive Director Christopher Zimmer.

“We also have observed an uptick in investment interest which shows the optimism of companies involved in German-Philippine business relations,” Zimmer added.

The survey results further showed that the price of energy (49 percent) is reported to be the biggest risk for companies, followed by price of raw materials (45 percent) and concerns on exchange rate (41 percent).

Most of the respondents (78 percent) see higher costs for energy, raw materials and intermediate goods as the short-term consequences of the Russian invasion of Ukraine.

Disruptions of logistics and supply chain are also seen by 61 percent of companies as the second shortterm consequence.

The survey results noted that the crisis further changed companies’ long-term strategies in the international division of labor.

GPCCI said 42 percent of respondents see that legislations and trade barriers will increase political influence on supply chains while 41 percent also expect changes in the risk assessment of locations.

“Most businesses are reeling from the impact of the Russian-Ukraine war since many European countries are heavily dependent on Russian energy imports,” said GPCCI President Stefan Schmitz.

“We look forward to working with the incoming administration to address these issues and to partner in fostering economic growth in the country,” Schmitz added.

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2022-06-30T07:00:00.0000000Z

2022-06-30T07:00:00.0000000Z

https://digitaledition.manilatimes.net/article/282024740951362

The Manila Times