Majority of senior business executives belonging to the Makati Business Club see brighter prospects for the Philippine economy this year, with expectations of a sustained gross domestic product (GDP) growth and higher exports and investments.
This optimism is also seen trickling down to operations of local companies with anticipation of higher revenues and net incomes, as well as of additional capital outlays for the year, results of MBC’s First Semester 2014 Executive Outlook Survey showed.
“MBC members see brighter prospects in investments, exports, and imports as driving this year’s economic expansion. Furthermore, the positive business sentiment extends to the company level as none of the companies polled project a decline in gross revenues this year. None of our member companies plan to lay off or downsize their workforce this year,” MBC executive director Peter Perfecto said in a statement.
The outlook survey was conducted from Feb. 3 to March 6 this year with MBC polling a total of 73 senior business executives, representing 20 percent of its 367 member companies.
Survey results showed that 52 percent of the businessmen polled were optimistic that the country’s economic growth will remain at the same level as last year’s 7.2 percent, while 30 percent foresee higher GDP growth. Only 18 percent project a lower GDP growth for 2014.
According to the survey, 64 percent of the respondents expect the country’s headline inflation to be higher in 2014 compared to last year’s average rate of 3 percent.
About 52 percent of them expect the 91-day Treasury bill rate to remain at the same level as last year’s weighted average of 0.315 percent, while nearly 36 percent of the respondents anticipate further depreciation of the local currency against the US greenback by an average of 4.5 percent from the P44.40 to a dollar rate as of end-2013.
Businessmen also waxed optimistic about the new investments coming in as well as with the country’s export growth, as 73 percent of the survey respondents are expecting approved investment pledges to surpass last year’s levels, while 64 percent see higher export receipts for 2014.
More than 75 percent, meanwhile, are anticipating the country to have higher imports this year from the $61.7 billion recorded in 2013.
About half of the survey respondents further bared that their companies will make additional investments this year, with the planned capital outlay seen averaging P520 million.
This was, however, lower than the previous edition of the executive survey where 59 percent of executives said they would pour in an average of P807 million for investments in 2013.
In terms of expectations on corporate performance for 2014, MBC said that 78 percent of respondents project their company’s gross revenues to rise above 2013 levels by an average of 18 percent.