German firms see improved business conditions

MANILA, Philippines — Over 50 percent of German firms in the Philippines are upbeat that business conditions will improve, as they anticipate increases both in investments to be made and the workforce count, according to a survey of the German–Philippine Chamber of Commerce and Industry (GPCCI).

Results of the Fall 2024 AHK World Business Outlook Survey showed 58 percent of firms are predicting improved business conditions, up from 50 percent who had the same sentiment in the Spring 2024 survey.

Likewise, 51 percent of German businesses are planning to increase investments, rising from 44 percent in the previous survey.

In terms of employment, 62 percent expect to hire more, up slightly from 61 percent in the previous survey.

GPCCI president Marie Antoniette Mariano said the German-Philippine business community’s optimism reflect the ongoing commitment to strengthen economic ties between the two countries.

“The growth in investment and employment projections is a clear indicator of confidence in the local market and we look forward to seeing these positive trends materialize over the coming year,” she said.

While German firms have an optimistic outlook on their overall business situation, skilled labor shortages and economic policy were cited as key risks.

German firms also identified supply chain disruptions and evolving market demands as issues affecting their operational efficiency.

To help businesses navigate regulatory challenges, the GPCCI has the German-Philippine Business Action Portal (GPBAP) in place to gather concerns and feedback from the German-Philippine business community regarding their transactions with various government agencies.

The GPBAP forms part of GPCCI’s commitment to work with the Anti-Red Tape Authority to help promote efficient government service delivery and the ease of doing business.

“Collaboration between government and the private sector is essential to build a more stable, predictable environment that fosters sustainable growth,” GPCCI board director and policy and advocacy chairperson Marian Norbert Majer said.

“It is crucial to address challenges like regulatory complexity and skilled labor shortages to fully capitalize on this optimistic business outlook,” he said.