by: Sarah Joson
Monday, May 30, 2016 |
The latest Business Expectations Survey of the Bangko Sentral ng Pilipinas showed that the country’s overall confidence index (CI) rose to 48.7 percent from 41.9 percent in Q1 2016. It is an indication that the business outlook for the Philippine economy was more bullish for the second quarter.
Several factors contributed to the upbeat results include election-related spending up until the actual national elections, sustained growth in domestic demand, introduction of new and enhanced business strategies, expansion of businesses and new product lines, and improving conditions in the local economy, even in some developed nations specifically in Asia. Moreover, during the recent summer season, the influx in the tourism industry and enrollment activities in schools has been indicated as key contributors.
The rosier outlook of respondents was further propelled by sustained foreign investments inflows and the nation’s more favorable macroeconomic conditions. The outlook of businesses in the Philippines reflected the improving business outlook in South Korea, France, Canada, and the Netherlands. However, it differs from the declining outlooks in the US, UK, China, Germany, and Australia.
For the third quarter of this year, business optimism is still high at 45.3 percent, but is lower compared to 49.6 percent for the second quarter.
The lower projection is said to be caused by the disruption of business operations during the rainy season, lower consumer demand because enrolment expenses are prioritized, and the anticipated increase in oil prices.
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