Majority of businessmen optimistic on economy

What a difference a year makes. Optimism among businessmen has become more pervasive, a Makati Business Club survey indicated, with the proportion of businessmen who are bullish on the economy rising to its highest level in 11 years. Some 80.6% of respondents to a survey conducted by the MBC among its members said they see higher GDP growth this year than last year, much higher than the 47.9% that said the same thing a year ago. This is the highest percentage of optimistic respondents since July 1996, when 93.9 percent of survey respondents predicted higher GDP growth in the year head. The MBC announced Thursday the results of its poll conducted January 22-February 15. The survey involved 62 businessmen or 9.4 percent of the group's membership. The results indicated MBC members expect improvement in major economic indicators. Some 61.3 percent see the inflation rate would be lower, 66.1 percent believe lending rates would go down and 62.9 percent expect the peso to rise. At least 74.2 percent said they expect higher investments, 72.6 percent foresee higher exports and 83.9 percent see higher imports. “This brighter outlook for 2007 can very well be an extension of businessmen’s experience in 2006," the MBC said in a statement. The respondents cited developments in the economic front, including a healthier fiscal position, stronger peso, lower inflation and lending rates, and growing investor confidence as the highlights of developments in 2006. The MBC now wants to see government efforts chanelled year to other issues cited by respondents such as the conduct of clean and honest elections, improving infrastructure, and fighting graft and corruption. “These are the top three most important issues that the Arroyo administration should address in 2007, according to majority of survey respondents. They also want to see the passage of measures seen to benefit the business climate, such as the rationalization of investment incentives and renewable energy bills," the group said. The respondents are also optimistic on the prospects of their businesses. A higher percentage of respondents believe their gross revenues (87.1 percent) and net income (64.5 percent) in 2007 will grow over 2006. Moreover, 32.3 percent of the respondents said they will expand their labor force this year, higher than last year's 29.8 percent. The percentage of respondents saying they will make additional investments dropped to 45.2% this year against 50 percent 2006, but the average additional investment amount went up to P953.6 million against P387 million in 2006. -GMANews.TV