From 41.9 percent, the confidence index or business outlook rose to 48.7 percent based on the latest survey of Bangko Sentral ng Pilipinas.
It means, the trust of businessmen and company owners in the Philippine economy has increased.
The survey was conducted nationwide with 1,482 business respondents from April 1 to May 17, 2016.
According to the report, among the factors that resulted in increased confidence are the May 9 election-related spending, sustained increase in orders and projects, anticipated increase in demand during summer, influx of tourists, low inflation, stable interest rates and sustained foreign investment inflows.
The deputy governor of the Bangko Sentral ng Pilipinas Diwa Guinigundo said, the result of the elections that secured the huge win of Rodrigo Duterte as incoming president, might have also affected the outcome of the survey.
“Business respondents are prepared to see how the new administration, the new political leadership will navigate the economic and financial waters and we hope that this is going to continue,” Guinigundo said.
The results of the survey also show the confidence of the business sector in the eight-point economic agenda of Duterte for the country.
“They have seen the eight-point program, and the first point in that eight-point program is precisely to continue with macroeconomic policies and to make sure that tax reforms are pursued. So, I think that should provide optimism to our business respondents,” Guinigundo further added.
The confidence of the business sector in the country’s economy is a good indication.
It translates to business expansions, economic growth, and more job opportunities for the people.
Even though the overall business confidence index rose in the second quarter of 2016, Bangko Sentral ng Pilipinas said, this may change a bit in the third quarter of the year because of the rainy season, enrollment period and the higher price of oil in the market.
(ROSALIE COZ/UNTV News)