Confidence in the Philippine economy remains strong among German businesses, which continue to view the country as a vital growth hub in Southeast Asia. Despite global uncertainties, firms surveyed by the German–Philippine Chamber of Commerce and Industry (GPCCI) say they are gearing up for steady expansion, job creation, and new investments — even as they call for clearer policies, stronger legal frameworks, and a more skilled workforce to sustain momentum.
Findings from the Fall 2025 AHK World Business Outlook Survey reveal that while optimism persists, companies continue to flag key operational challenges, particularly in economic policy consistency, legal certainty, and labor availability.
Steady Optimism Anchored in Growth Confidence
Nearly half (47%) of German firms describe their current business situation as positive, while 49% anticipate stable development within the next 12 months. Moreover, 69% expect continued momentum in local economic growth and 51% foresee sustained investment activity. Confidence in workforce stability also remains relatively strong at 58%.
“German businesses continue to express confidence in the Philippines as a leading destination for investment and growth,” said Ms. Marie Antoniette Mariano, GPCCI President. “To translate this confidence into tangible economic gains, the government must accelerate reforms that promote transparency, ensure policy coherence, and enhance administrative efficiency to further improve the ease of doing business.”
Mariano added that “a stable, predictable, and accountable governance environment—anchored on clarity, fairness, and trust—will deepen investor confidence, attract quality long-term investments, and strengthen the Philippines’ position as a competitive and reliable partner in the region.”
Balancing Optimism with Operational Concerns
Despite the generally positive outlook, German businesses continue to identify several issues that could impact their operations over the next year. Chief among these is uncertainty in economic policy—echoing the same concern raised in the Spring 2025 survey. Respondents cited inconsistencies and unpredictability in local regulations as a persistent hurdle.
Legal certainty emerged as the second-most pressing issue, particularly regarding the consistency and efficiency of implementing laws and tax regulations. Meanwhile, the shortage of skilled labor remains a major challenge, underscoring the need to strengthen education and workforce development programs.
Other concerns include tax administration, climate risks, and political challenges, which businesses say could hamper both operational efficiency and broader economic progress.
“These concerns reflect the nuanced business environment in the Philippines, where optimism about growth is tempered by structural and policy-related challenges,” said Dr. Marian Majer, GPCCI Policy and Advocacy Chairperson. “This underscores the importance of fostering a predictable policy environment, improving regulatory quality, and prioritizing workforce development to sustain investor confidence and inclusive growth.”
Minimal Impact from U.S. Trade Policy
Most German companies reported that recent U.S. trade policies and tariffs have had little to no effect on their operations in the Philippines. Some even noted potential advantages, such as expanded trade opportunities, greater market diversification, and access to new partners. However, others cited rising shipping costs, customs pressures, and increased competition as ongoing challenges in global trade dynamics.