Businessmen see bright prospects for 2014 — MBC

BUSINESSMEN expect the economy to sustain last year’s growth on the back of higher investments, exports, and imports, the Makati Business Club (MBC) yesterday said.

The business organization said results of its First Semester 2014 Executive Outlook Survey showed that 52% of senior business executives expect the economy to expand at the same pace as last year’s 7.2%.

Over 30% said gross domestic product growth would likely be higher this year, while close to 18% held a negative view.

“MBC members see brighter prospects in investments, exports, and imports as driving this year’s economic expansion,” MBC Executive Director Peter Angelo V. Perfecto said.

The economy grew by 7.2% last year, topping a 6-7% target. The government has set a higher 6.5-7.5% goal for 2014.

The MBC said 64% of the respondents expected inflation to rise from last year’s 3%, while over 53% said the 91-day T-bill rate would likely stay at last year’s 0.315% average. The peso, 36% said, will likely fall by 4.5% from the end-2013 rate of P44.40 to the US dollar.

Almost 73% said approved investments would top last year’s levels. Over 64% said exports would also increase year on year, and a more than 75% said the same for imports.

This positive economic outlook, Mr. Perfecto noted, extends to corporate performance as over 78% forecast gross revenues to increase, and by an average of 18%, from last year. Over 67%, meanwhile, expect an average 17% rise in net incomes.

Close to 51% said they would make additional investments, with the average at P520.4 million. This was down from the P807 million recorded a year earlier.

With regard to hiring additional staff, over half of the respondents said they would expand their workforce by close to 15%. None planned to downsize.

Lastly, more than 52% of the respondents said new tax reforms should be introduced to raise the country’s global competitiveness standing.

The MBC’s First Semester 2014 Executive Survey was conducted from Feb. 3 to March 6. Seventy-three of the organization’s 367 members, excluding foreign embassies and trade offices, responded. Nearly 84% of those who replied were in top management, the MBC said. A little over half, or 52%, of the respondents were in the service sector. –Businessworld