MANILA, Philippines – The outlook of local businessmen on the economy for this year is the most upbeat in 14 years, based on the Makati Business Club’s Executive Outlook Survey.
The survey, which was conducted in March this year, shows that 89 percent of survey respondents believe that this year’s economic growth will rise faster than the 0.9 percent gross domestic product (GDP) growth recorded in 2009.
This percentage of optimistic respondents is the highest in 14 years, surpassed only in July 1996 when 93.9 percent of respondents believe economic growth would be higher than the previous year.
MBC executive director Alberto Lim said the overwhelming positive sentiment of the local business community is based on the anticipation of the coming elections which “could bring a fresh wind of change.’’
The survey also showed that 66.2 percent or majority of the respondents expect a higher inflation rate for this year.
Looking at interest rate, 55.4 percent of the respondents said that the rate will be higher this year than the previous year while 33.8 percent said the rate will be the same as the previous year.
Likewise, 36.5 percent of the respondents foresee a more stable peso while 66.2 percent of respondents expect higher levels of investments for this year.
In the 2009 survey, only two percent expected the 2009 economic growth to surpass the 2008 GDP growth rate.
MBC’s 2010 Executive Outlook Survey was conducted among MBC members from Feb. 19 to March 24, 2010.
Seventy-four members responded, representing around 10 percent of MBC’s total membership.
Of the total respondents, 90.5 percent represent top management and 89.1 percent Filipino executives with only 10.8 percent being foreigners.
A majority of 77 percent of the respondents are engaged in the services sector followed by the manufacturing sector with 5.4 percent and diversified with 2.7 percent and others, 12 percent. –Ma. Elisa P. Osorio (The Philippine Star)