Business optimism at 14-yr high: MBC survey

MANILA, Philippines – Business outlook for 2010 is the most upbeat in 14 years as the economy recovers from the global crisis, according to a survey conducted by the Makati Business Club (MBC).

The MBC Executive Outlook Survey showed that 89% of respondents believe that gross domestic product (GDP) growth this year would exceed the 0.9% growth registered in 2009. This percentage of optimistic respondents was the highest in 14 years, surpassed only in July 1996 when 93.9% of respondents believed economic growth would be higher than the previous year.

But MBC executive director Alberto Lim noted that the overwhelming positive sentiment of the business community for this year was expected since last year’s GDP growth was an 11-year low.

In the 2009 survey, only 2% expected economic growth to surpass growth in 2008.

Majority of respondents this year foresee a more favorable trend in 2010 for most of the other major economic indicators: a stable peso (36.5%), higher levels of investments (66.2%), exports (74.3%), and imports (73.0%).

On the other hand, majority of the respondents forecast a higher inflation rate (66.2%), and interest rate (55.4%).

MBC latest survey was conducted among its members from February 19 to March 24. Seventy-four members responded, representing around 10% of MBC’s total membership. –abs-cbnNEWS.com