5 April 2010 – Businessmen’s outlook on the economy for 2010 is the most upbeat in 14 years, based on the Makati Business Club’s Executive Outlook Survey undertaken in March this year.

Eighty nine percent of respondents believe that economic growth in 2010 will accelerate faster than the 0.9% GDP growth rate in 2009. This percentage of optimistic respondents is the highest in 14 years, surpassed only in July 1996 when 93.9% of respondents believed economic growth would be higher than the previous year.

MBC executive director Alberto Lim notes the overwhelming positive sentiment of the business community for this year follows last year’s 11-year low GDP growth when the economy barely managed to avoid a recession. He notes that aside from the base effect, there is also the anticipation of the coming election which could bring a fresh wind of change.

In the 2009 survey, only 2% expected the 2009 economic growth to surpass the 2008 GDP growth rate. Majority of respondents this year foresee a more favorable trend in 2010 for most of the other major economic indicators—a stable peso (36.5%) and higher levels of investments (66.2%), exports (74.3%), and imports (73.0%). On the other hand, majority of the respondents expect a higher inflation rate (66.2%) and interest rate (55.4%) this year.

MBC’s 2010 Executive Outlook Survey was conducted among MBC members during the period 19 February to 24 March 2010. Seventy-four members responded, representing around 10% of MBC’s total membership.

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