More businesses in the country have plans to expand their operations and hire more workers in the months ahead, substantiating views that the economy may grow faster this year despite the problems abroad, according to the Bangko Sentral ng Pilipinas.
In a nationwide survey the BSP conducted from April 2 to May 11, close to a third, or 29.1 percent, of respondents said they would need to expand operations because of the expected increase in demand for their products and services in the third quarter. This was up from the 24.7 percent registered in the same period last year.
Over 1,500 small, medium and large enterprises, some of which are engaged in export, participated in the BSP survey.
The firms that have set their sights on expansion are mostly those engaged in utilities, manufacturing, and mining and quarrying, the central bank reported.
“The favorable results support the view that the economy will accelerate this year,” said Ma. Cyd Tuaño-Amador, BSP assistant governor.
With plans to expand, the companies are also set to take on more workers.
Survey results showed that the employment outlook index stood at +22.1 percent—up from last year’s +14.5 percent.
A positive index means that the percentage of respondents who have expressed plans to hire more workers in the next quarter exceed those that say they have no such plans.
Also, the volume of business activity index reached +46.1 percent, rising from last year’s +33.6 percent.
Amador said that the favorable sentiment of businesses in the Philippines was brought on by growing expectations that demand in the country would remain robust.
“The economy feeds from domestic demand, and it is a source of its resiliency,” Amador explained.
Because of strong domestic demand, which is fueled partly by remittances from overseas workers, the BSP expects the Philippines to grow respectably this year.