Businessmen are optimistic the economy will grow at a faster pace this year but are worried about the lingering political crisis and corruption in government, a Makati Business Club survey said.
In the latest Executive Outlook Survey, the Makati Business Club said business executives downgraded the performance ratings of several government agencies during the second half of 2005.
But close to 48 percent of senior business executives surveyed believe the economy will grow at a faster pace this year compared to last year’s, when the economy, as measured by the gross domestic product (GDP), grew by only 5.1 percent.
Almost 43 percent and over 52 percent, respectively, expect inflation and interest rates to remain at their 2005 levels.
Inflation rose to 7.6 percent in 2005 while the 91-day Treasury bill rate stood at 6.14 percent.
Around 40 percent of executives expect the peso to depreciate slightly for the rest of the year from its end-2005 closing of 53.09 to the greenback.
The peso closed at 51.48, defying the forecast of businessmen.
The survey also showed that the business community sees brighter prospects for investments and trade this year.
Nearly 62 percent expects higher approved investments in 2006. Half of the respondents see a higher level of exports, while over 71 percent forecast higher imports this year.
Meanwhile, more government agencies received negative ratings from businessmen over the last six months.
Fourteen government agencies, institutions and basic services received positive net scores for their performance in the July to December 2005 period, while 23 got negative net scores. Elaine Ruzul S. Ramos
http://www.manilastandardtoday.com/?page=business02_feb11_2006
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