The Philippines ranked third in global business optimism, according to Grant Thorton, an international accounting and auditing company. The survey results showed that the country’s businesses are optimistic for the next 12 months.
Though ranked third, the country’s business optimism dropped a little from its 86 percent rating down to 84 percent in the fourth quarter. Despite the slight decrease, the country remains on the top list internationally. India is at number one on the list with 89 percent followed by Ireland with 88 percent.
The optimism report was based on business expectations for revenue, selling prices, employment and profitability.
Meanwhile, businesses in other Asian countries like Thailand has dropped its optimism down to 10 percent from its 26 percent in the fourth quarter. Malaysia on the other hand went down to 20 percent from 30 percent, while China has increased by 10 percent.
“Fears over the slowdown of Chinese economy caused a shock to the system in 2015 and in the fourth quarter, the optimism of Asia Pacific businesses plummeted,” Marivic Españo, chairperson and CEO of P&A Grant Thornton said. The Chinese economy has improved and this is partly due to economic rebalancing. According to Españo, “the rebalancing of the Chinese economy creates new opportunities; demand for raw materials will not reach the heights we saw in recent years but as the need for services will continue to grow.”
Business optimism across Asia Pacific grew to 31 percent from its 20 percent in the fourth quarter and also higher than the 27 percent that was reported same time last year.
Grant Thornton’s International Business Report (IBR) is a quarterly global survey of business leaders in 36 economies. P&A is Grant Thornton’s Philippine partner.
According to Españo the growing number of businesses in Asia Pacific are looking far ahead in 2016 and exploring opportunities for growth at a global scale, which reflects in their improved levels of optimism.