Published by the Visayan Daily Star Publications, Inc.
|NINFA R. LEONARDIA|
Editor-in-Chief & President
NIDA A. BUENAFE
MAJA P. DELY
ANTONIO L. LEONARDIA|
In the latest Grant Thornton International Business Report, the Philippines improved in its ranking on business optimism, going from fourth in the first quarter of the year to second in the second quarter.
The IBR is a survey of both listed and privately-held businesses, with responses drawn from interviews with 3,000 businesses from all industry sectors across the globe conducted in May and June 2012. The respondents were chief executive officers, managing directors, chairmen and other senior executives. In the most recent survey, the Philippines registered and average of 90 percent, only behind Peru’s 96 percent.
It is worth mentioning that the survey was conducted while the Corona impeachment trial was underway and yet the results showed that Filipino business leaders were still more optimistic compared to their peers across the globe. The Philippines eight point gain in optimism compared from the previous quarter came despite tepid expectations for key economic indicators such as profitability and revenue.
The Grant Thornton International Business Report provides insight into the views and expectations of over 12,000 businessmen per year across 40 economies. This survey draws upon 20 years of trend data for most European participants and 10 years for many non-European countries.
The report warns that the improvement in business optimism is not immediately expected to translate to higher revenues or the creation of new jobs but it does mean that most of the businessmen that were asked still believe that things are looking up for their endeavors. Since those who were asked can be considered as the movers and shakers of industries, we can probably say that this upbeat trend is a result of improved conditions and rational expectations and not just a result of irrational exuberance that could as quickly transform into bitter disappointment as soon as the bubble is burst.
Filipinos may be known as a happy-go-lucky people, but when it comes to business, we usually mean business. Business optimism and confidence have not been this high in years, and the government certainly deserves credit for this achievement. An environment where businessmen can feel safe, comfortable, and even optimistic is a good foundation for a strong and vibrant economy, and we hope that government and businessmen continue to work together towards this goal. *