RP firms more upbeat this year, says survey

MANILA, Philippines - Local businesses are more optimistic this year after the country avoided going into recession in 2009, an international consultancy group said.

In a study titled International Business Report (IBR) Grant Thornton said there has been an increase in the optimism of privately held businesses to 68 percent this year, from 65 percent in 2009.

“It’s a small uptick, true but we’re confident that this signals the start of a more upbeat business community,” Marivic Españo, managing partner and CEO of Punongbayan & Araullo (P&A) said. P&A is a member firm of Grant Thornton.

Out of 36 countries surveyed, the Philippines ranked sixth in the optimism-pessimism index. Chile was the most optimistic. The country’s Asian neighbor are less optimistic, with Singapore at number 11, Malaysia 14 and Thailand at 27.

The IBR also asked respondents when they expect to see an upturn in the global economy. Among local business leaders, 37 percent said they anticipate a global recovery in the second half of 2010, while 17 percent said the recovery has already taken place. Some 21 percent do not expect a worldwide turnaround until 2011.

“Business leaders are cautious about their optimism, but they are seeing the signs that we’re pulling out of the financial crisis,” Españo said. “Consumer spending is rebounding, thanks partly to strong remittances; the mining sector expects to bounce back this year; even the semiconductor industry, which was hard hit by the US recession, seems poised to post double-digit growths this year.

“We may not be completely out of the woods yet but the atmosphere is hopeful, and we need that attitude in order to realize a complete recovery,” she added.

Both the Asian Development Bank and the World Bank expect the economy to grow by more than three percent this year despite the natural calamities that threatened to wipe out the small economic gains that were made in 2009.

The International Business Report is an international survey of the opinions of privately held businesses (PHBs) with sizes ranging from medium to large. The survey covers over 7,400 respondents in 36 economies.