Business optimism in the Philippines dropped by 12 percentage points in the first quarter of 2018 from the last three months of 2017, according to Grant Thornton’s International Business Report.
“The drop in optimism across Asia Pacific contrasts with most other global regions. It is striking that the major contributors to this dip are China and Japan. That said, their confidence levels still compare favorably with those in recent years,” said P&A Grant Thornton chairperson and chief executive Marivic Españo.
The dip in the country’s economic outlook is in contrast to those of its Southeast Asian neighbors and can be attributed to a number of factors, including a decrease in employment expectations and investments in plant and machinery.
Both employment expectations and investments in plant and machinery in the Philippines fell 14 percentage points from a quarter ago.
Employment expectations are down by 10 percentage points in the Asia Pacific and have remained flat in Southeast Asia.