German companies are bullish in doing business in the Philippines this year, an economic report and outlook by the German-Philippine Chamber of Commerce and Industry (GPCCI) indicated.
The GPCCI study said 59 percent of German firms in the country are expecting better operation in 2019 due to improved perception towards economic development (29 percent), employment (46 percent) and investment (34 percent).
It added that the government’s infrastructure program ‘Build, Build, Build’ (BBB) is seen driving the positive sentiments from German enterprises as it brings opportunities for the construction sector.
“The BBB program is seen as an economic catalyst propelling the construction industry and associated sectors. It may drive the entire economy for years to come,” the GPCCI said.
German companies, the report said, are also banking on the “dynamic economic growth” of the country. It likewise noted the above-6 percent gross domestic product growth rate of the country for the past eight years.
“The German-Philippine business community is very keen on doing business in the Philippines and that companies continue to have positive expectation on market development and opportunities,” the GPCCI study said.
The report is also indicative that more trade and investment opportunities are in the offing between the governments of the Philippines and Germany.
Last year, Philippine exports to Germany rose 4.87 percent to $4.3 billion from $4.1 billion on the previous year. Bulk or 67.8 percent of the total exports comprised of electronics, followed by electrical engineering (12.1 percent), measurement technology (3.6 percent), food products (3.1 percent) and more.
Imports from Germany, meanwhile, grew 30 percent to $3 billion last year from $2.3 billion in 2017, majority of which composed machines (23.1 percent), electronics (19.4 percent) and chemicals (14.9 percent).
The study said 37 percent of German firms in the country are expecting the same level of operations while the remaining 4 percent saw 2019 as “poor or low.”