PH investors see better prospects ahead

Investors were more bullish this year of their prospects in the Philippines due to the country’s sustained economic growth, UK-based Standard Chartered Bank said.

“More clients (a net 32 percent) expected business prospects to improve in the year ahead than was the case in 2015 (24 percent),” Standard Chartered said last week, citing a poll conducted among 160 corporate and financial institution clients during its annual year-ahead briefing in Manila last January 29.

Poll results showed 51 percent of respondents saying business prospects this year were seen “better,” higher than the 45 percent who answered the same last year.

The percentage of respondents who deemed prospects in 2016 would be “worse,” meanwhile, declined to 20 percent compared with 22 percent in 2015.

Standard Chartered attributed the greater optimism to “a higher percentage of clients expecting better growth and a lower percentage expecting lower growth.”

The bank expects the country’s economy to grow 5.7 percent this year. The forecast, however, is below the government’s 7 to 8 percent growth target for 2016 and the 5.8-percent economic expansion last year.

Developments in the domestic as well as Chinese markets remain the topmost concern among the bank’s clients in the Philippines.

“The percentage of clients most concerned about China rose to 51 percent, from 31 percent in 2015. Meanwhile, Europe and the US were less of a concern, despite uncertainty over the outlook for US growth and rates. We differ from our clients here—we are more bearish on the US and more bullish on China,” Standard Chartered said.