German firms biz sentiment in PH improves

MANILA – German companies operating in the Philippines have better business sentiments in the latest poll but remain cautious as negative impacts and big risks persist amid the pandemic.

In its AHK World Business Outlook (WBO) Survey-Fall 2020 released Friday, the German-Philippine Chamber of Commerce and Industry (GPCCI) said firms have a more positive sentiment about their respective business activities compared to the previous WBO Spring 2020 survey.

In the latest survey, 50 percent of the respondents expect better business situations within the next 12 months.

This improved from 20 percent that projected better business situations for themselves over a 12-month period in the previous survey.

“Companies already see some light at the end of the tunnel,” GPCCI President Stefan Schmitz said.

Firms that said they would reduce their headcount also decreased to 35 percent in the Fall survey from 44 percent in the Spring survey.

“However, many risks persist and the uncertainty in the economy remains,” Schmitz added.

The biggest risks to surveyed firms here include demand issues (64 percent), economic framework (58 percent), and financing (51 percent).

Travel restrictions remain the top concerns of German firms here.

Meanwhile, among the measures implemented by the surveyed companies amid the pandemic include cost reductions, increased digitalization, and postponing and canceling investments.

The WBO Survey-Fall 2020 was conducted from Sept. 30 to Oct. 19 this year with a total of 69 respondents.