BUSINESSES are more confident in the economy for the first quarter, second quarter and the next 12 months, according to the survey released by the Bangko Sentral ng Pilipinas (BSP) yesterday.
The more upbeat outlook in the first quarter was attributed to higher consumer demand, full reopening of the economy and return to pre-pandemic normalcy, increased business activities and expansion of businesses and opportunities in healthcare, manufacturing and construction, the BSP data showed.
For the first and second quarters and the next 12 months, businesses expect the peso to appreciate against the dollar and that the peso and borrowing rates to rise.
Respondents in industry, construction, services, and wholesale and retail trade are all more optimistic. Traders were also generally more upbeat, save for exporters who were less optimistic. The BSP’s Department of Economic Statistics attributed this to poor weather conditions which affected certain mining operations.
Although firms expect inflation to remain above the governmentâs two to four target range, it is also seen to ease in the near term, the BSP survey said.
Businesses expect inflation in the first and second quarters and the next 12 months to average 7 percent, 6.9 percent and 6.6 percent, respectively.
Inflation in February slightly eased to 8.6 percent from 8.7 percent the previous month.
The survey however showed businesses still generally expect access to credit to remain tight, with interest rates and borrowing costs possibly going up further. (ABS-CBN News)
