MANILA – Philippine-based businesses are the most optimistic in Southeast Asia in terms of outlook on the local economy this year, according to Grant Thornton’s International Business Report (IBR).
The IBR recently reported that 66 percent of surveyed businesses in the country are positive about the Philippine economy this year, even higher that the optimism in ASEAN, which stood only at 42 percent.
The optimistic outlook in Indonesia posted at 61 percent, Malaysia and Vietnam both at 38 percent, and Singapore at 18 percent.
Businesses in Thailand were pessimistic about their local economy, as net optimism was recorded at -1 percent.
The global outlook for businesses this year is also “more reserved” with the cooling of economic cycle and political uncertainties around the world, the Grand Thornton report said.
“Economic uncertainty is identified by business leaders as the biggest risk, peaking at 50 percent, a rise of 22 percent from second quarter 2018. This can be partly attributed to geopolitical tensions, such as the United States-China trade war,” it noted.
“While global financial markets are increasingly volatile, business leaders in the real economy remain optimistic because global GDP is forecast to continue growing and they know their business will grow with it. Despite increasing down side risk, economic fundamentals remain strong and opportunities exist,” Grant Thornton Global Leader Francesca Lagerberg said.
However, for the Philippines alone, 70 percent of surveyed businesses projected that their revenues will increase this year, 52 percent forecast that their exports will grow, and 62 percent said that they will hire more in 2019.
“It doesn’t look like a downturn is on the horizon. Sentiment has more likely decreased owing to slower trend growth, subdued inflation and low macro volatility — a so-called ‘normalizing’ of the global economy,” P&A Grant Thornton chair and Chief Executive Officer Marivic Españo said. (PNA)
