Press Statement
Top Business Executives See Recession, Weak Peso and Job Losses in 2009

11 November 2008 -- Majority of businessmen expect a recession in 2009, a more difficult credit environment, and a reduction in jobs, according to a business opinion survey conducted by the Makati Business Club, the country’s premier business organization composed of senior executives from the country’s largest corporations.

In a survey conducted among MBC members from October 24 to November 7, 87% of respondents agreed that the domestic economy will likely go into a recession next year. This includes those who “somewhat agree” (70.1%) and those who “completely agree” (15.9%). MBC executive director Alberto Lim says GDP growth will post a “mild downturn” towards the first quarter of 2009.

At the same time, 76% of MBC members agreed that “obtaining bank loans for your company will be more difficult,” and 75% said “access to trade credits will be more difficult.”

As a result of their bleak reading of the economic environment, around 62% of the MBC respondents said their “company’s workforce will contract” in the coming year and 55% expected their capital expenditures to drop in the same period, even if some 35% plan to increase new investments within the next six months.

The respondents anticipate other major economic factors to weaken, with 87% saying they expect the peso-dollar exchange rate to depreciate.

The one bright spot is the inflation picture, with 59% of the top business executives seeing the inflation rate slowing in 2009. See results