Confidence Amidst Economic Challenges Embodies German-Philippine Firms in recent survey

MANILA, Philippines – Businesses involved in German-Philippine economic relations are optimistic about their overall business situation, expecting increases in both investment and employment. Key risks highlighted include skilled labor shortages, economic policy conditions, demand changes, and supply chain issues. 

This survey also explores external factors affecting the competitiveness of companies, focusing on supplier networks, new markets, and competition challenges, as well as their competitive position for the past 5 years. These are the results from the Fall 2024 AHK World Business Outlook Survey conducted by the German–Philippine Chamber of Commerce and Industry (GPCCI). 

Positive Growth Trends in German-Philippine Economic Relations 

The Fall 2024 survey reflects a confident business sentiment, with 58% of firms predicting improved business conditions, up from 50% in Spring 2024. Investment projections are likewise robust, with 55% of businesses planning to increase investments, an encouraging rise from 44% in the previous survey. Employment expectations are also continually on the rise, highlighting the potential for more potentials on local job creation in the coming year.   

“The optimism expressed by businesses in the German-Philippine community reflect our ongoing commitment to strengthening economic ties." Says GPCCI President Marie Antoniette Mariano. " 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.” 

Addressing Emerging Challenges 

On the other hand, survey respondents identified the lack of skilled workers as the primary obstacle to sustained growth, while complex economic policies and policy unpredictability remain key concerns. Additionally, supply chain disruptions and evolving market demands are pressing issues that affect operational efficiency. To support companies in identifying and managing these regulatory risks, GPCCI offers the German-Philippine Business Action Portal (GPBAP) to help businesses navigate challenges and build resilience.  

“Collaboration between government and the private sector is essential to build a more stable, predictable environment that fosters sustainable growth.” says GPCCI Board Director and Policy and Advocacy Chairperson Dr. Marian Norbert Majer. “It is crucial to address challenges like regulatory complexity and skilled labor shortages to fully capitalize on this optimistic business outlook.” 

Assessing Competitive Factors 

The survey also analyzed external influences on the competitiveness of German-Philippine businesses. While factors such as local competition, market intervention programs, and shifts in the "Made in Germany" brand were largely viewed as neutral, sustainability requirements emerged as a positive driver, with 43% of companies seeing it as a competitive advantage. Overall, nearly half of German-Philippine firms equally reported an improved or stable competitive position over the past five years. 

“Our latest survey shows that German-Philippine businesses are enhance their respective operations through diversification and increasingly viewing sustainability as a strategic advantage.” said GPCCI Executive Director Christopher Zimmer. “Embracing sustainable practices and standards is proving essential for long-term growth in today’s competitive market.” 

About the Survey 

The AHK World Business Outlook Fall 2024 Survey included companies from the services (48%), trade (28%), and manufacturing or construction sectors (24%). Respondents represented a diverse array of businesses, including subsidiaries or branches of German companies (32%) and local firms with or without a German presence. Among the companies surveyed, 61% have fewer than 100 employees, 16% employ between 100 and 1,000 staff, and 23% employ more than 1,000 people globally.