German business ventures operating in the Philippines have improved the sentiments about the country’s prospects as reflected in a recent survey but they largely remain cautious as negative impacts and big risks persist amid the obtaining Covid-19 pandemic.
In its AHK World Business Outlook (WBO) Survey-Fall 2020 released recently, the German-Philippine Chamber of Commerce and Industry (GPCCI) officials said firms have a more positive sentiment about their respective business activities compared to the previous WBO Spring 2020 survey.
In the latest survey, 50% of the respondents expect better business situations within the next 12 months. The figure reflects a significant improvement from the 20% who projected better business situations for themselves over a 12-month period in the previous survey.
“Companies already see some light at the end of the tunnel,” GPCCI President Stefan Schmitz said, adding that firms which said they would reduce their headcount also decreased to 35% in the Fall survey from 44% in the Spring survey.
“However, many risks still persist and the uncertainty in the economy remains,” Schmitz noted. The biggest risks to the firms surveyed include demand issues (64%), economic framework (58%), and financing (51%(. Travel restrictions remain the top concerns of the German firms.
Schmitz said that the measures implemented by the surveyed companies amid the pandemic include cost reductions, increased digitalization, and postponing and canceling investments, among others.
The WBO Survey-Fall 2020 was conducted from September 30 to October 19 this year with a total of 69 respondents.