German firms bullish on the Philippines

The German-Philippine Chamber of Commerce and Industry (GPCCI) reported on Tuesday that optimism of businesses involved in Berlin-Manila economic relations has improved in the Fall 2024 AHK World Business Outlook Survey, according to a report by Philippine News Agency.

The Fall 2024 survey results show better business condition outlook at 58 percent, compared to the 50 percent in the Spring 2024 report.

GPCCI said this is mainly driven by investment and hiring plans of these companies in the Philippines, which improved to 55 percent and 44 percent, respectively.

The business group said the employment outlook of business in the Philippines surpasses ASEAN and worldwide averages.

"The optimism expressed by businesses in the German-Philippine community reflect our ongoing commitment to strengthening economic ties," GPCCI president Marie Antoniette Mariano said.

"The growth in investment and employment projections is a clear indicator of confidence in the local market, and we look forward to seeing these positive trends materialize over the coming year."

However, the GPCCI said the positive outlook in the Philippines was tempered by "lagging performance in global competitiveness rankings".

"While this optimism is encouraging, we must remain vigilant in addressing the structural challenges that could hinder sustained progress," Mariano added.

The survey said Philippine competitiveness will further improve if challenges in rising energy prices, infrastructure, and supply chain disruptions will be addressed.

GPCCI executive director Christopher Zimmer said sustainability is also a defining factor for the future of business.

The Fall 2024 survey also shows that 43 percent of German-Philippine businesses identified sustainability practices as a growth driver.