Findings from the Fall 2025 AHK World Business Outlook Survey, conducted by the German–Philippine Chamber of Commerce and Industry (GPCCI), further reveal that climate risks, political challenges, and tax administration are among the additional challenges cited by respondents. Regarding U.S. trade policy, German firms report minimal to no impact on their operations in the Philippines. Overall, the sentiment reflects a cautious, wait-and-see approach as businesses navigate a complex and evolving global landscape.
German Firms See Continued Economic Momentum in the Philippines
About 47% of the respondents are optimistic about their business situation, and nearly half (49%) anticipate stable business development over the next 12 months. Furthermore, 69% of respondents expect continued momentum in local economic development, while 51% foresee steady trends in local investments. Additionally, 58% of firms express confidence in the stability of the local workforce.
“German businesses continue to express continued confidence in the Philippines as a leading destination for investment and growth. To turn this confidence into lasting economic gains, the government must accelerate reforms that reinforce transparency, ensure policy coherence, and enhance administrative efficiency to improve the ease of doing business.” Says Ms. Marie Antoniette Mariano, GPCCI President. “A stable, predictable, and accountable governance environment—anchored on clarity, fairness, and trust—will further deepen investor confidence, attract high-quality long-term investments, and strengthen the Philippines’ position as a competitive and reliable partner in the region."
Business Sentiment Reflects Operational Uncertainties
While the economic outlook remains on a sustained trajectory, German businesses express concern over several risks that may affect operations over the next 12 months. Economic policy conditions continue to be the top concern, consistent with findings from the Spring 2025 survey, largely due to the perceived inconsistency and unpredictability of local policies. Concerns on legal certainty grew significantly and now ranks as the second most pressing issue, particularly in relation to the efficiency and clarity of regulations and their consistent application, including bureaucratic and taxation challenges.
The ongoing demand for skilled labor has also highlighted the shortage of qualified workers in the Philippines as a key challenge for companies. In addition to these primary concerns, businesses have identified other specific risks including tax administration, climate threats, and political challenges. These factors are seen as significant obstacles to both business operations and the broader trajectory of local economic development.
"These concerns reflect the nuanced business environment in the Philippines where optimism about growth is balanced by structural and policy-related challenges,” says Dr. Marian Majer, GPCCI Policy and Advocacy Chairperson. “This sentiment underscores the importance of fostering a more predictable policy environment, enhancing regulatory excellence, and ensuring consistent, efficient implementation, as well as prioritizing education and workforce development to support sustained investor confidence and inclusive economic progress.”
German businesses in the Philippines report minimal impact from U.S. tariffs and trade policies on their local operations. Some respondents noted potential benefits, such as expanded trade opportunities, access to alternative markets, and increased diversification. However, firms also acknowledged challenges, including heightened competition, rising shipping and customs costs, and pressure from trade diversion.
About the Survey
The AHK World Business Outlook Fall 2025 Survey in the Philippines was initiated by the German–Philippine Chamber of Commerce and Industry (GPCCI) and participated in by various companies engaged in German–Philippine business relations. Respondents represented key sectors including services (60%), trade (20%), and manufacturing or construction (48%).
In terms of company size, 47% employ fewer than 100 people, 35% have between 100 and 1,000 employees, and 18% havemore than 1,000 employees. Regarding company type, 43% are local firms without a branch in Germany, 31% are subsidiaries or representations of German companies, 18% are international firms without a German branch, 6% are international firms with a German branch, and 2% are local firms with a branch in Germany.
The AHK World Business Outlook (AHK WBO) is based on a regular survey conducted by the Association of German Chambers of Industry and Commerce (DIHK) among member companies of German Chambers of Commerce Abroad (AHKs), delegations, and representative offices. It reflects insights from over 3,200 German companies, branches, and subsidiaries worldwide.
