Cover of the AHK World Business Outlook (WBO) Survey-Spring 2021 done by German-Philippine Chamber of Commerce and Industry (GPCCI).
MANILA – The latest survey of the German-Philippine Chamber of Commerce and Industry (GPCCI) shows that more companies consider that they are currently in a good situation, while more of them see no apparent changes in economic development prospects amid the pandemic.
The AHK World Business Outlook (WBO) Survey-Spring 2021 indicated that 21 percent of the surveyed companies said the current situation of their businesses is good, increasing from 19 percent of respondents in the Fall 2020 survey and 20 percent a year ago.
“Half of the participating firms consider their current company situation as satisfactory,” the GPCCI survey said.
The number of firms saying they are in bad condition amid the ongoing coronavirus disease 2019 (Covid-19) pandemic also declined to 29 percent in the Spring 2021 survey, improving by 7 percentage points, from 36 percent in the previous surveys.
Although more companies said they are in satisfactory to good situation, there is also an increase in the number of firms that expect no apparent changes in economic development prospects.
From 37 percent in the WBO Fall 2020 survey, companies saying they see no changes in the local medium-term economic development increased to 45 percent.
“Companies feel the negative economic effects of the Covid-19 surge in (the) first quarter of 2021, and they are unsure about the economic development” GPCCI president Stefan Schmitz said. “Only one out of 10 companies expects economic recovery this year. Six months ago, the number was three times higher.”
About 14 percent of the surveyed companies said they will have higher investments locally in the next 12 months, lower than the 19 percent in the Fall 2020 survey but higher than the 13 percent in the Spring 2020 survey.
GPCCI added that lack of demand, concerns on economic policy framework, and financing issues are the top risks that firms anticipated in the next 12 months.
Firms also noted that travel restriction is the top persisting impact of Covid-19 to their business.
“The risks and concerns are still the same as when the pandemic started: travel restrictions worldwide, lesser demand, uncertainty regarding the policy framework and finance issues,” GPCCI executive director Martin Henkelmann said.
The WBO Spring 2021 survey was conducted between March 18 and April 19, 2021 with 66 respondents mostly from the services sector, followed by trade and manufacturing industry and construction. (PNA)
