BUSINESS OUTLOOK | Members of the business community say the economy will need more time to recover from the impact of the COVID-19 pandemic as they worry about the continuing increase in prices of goods and problems with the supply chain and labor. (Photo by RICHARD A. REYES / Philippine Daily Inquirer)
MANILA, Philippines — About half or 52 percent of respondents in a poll among business leaders said they expect the economy to take two more years to recover from the COVID-19 pandemic.
The 2022 CEO Survey conducted in July and August by the Management Association of the Philippines (MAP) and PwC Philippines also emphasized the urgency for the government to take concrete steps against corruption.
“In terms of the concerns of the business leaders, they have identified the higher prices and the supply chain issues, as well as labor constraints as possible continuing problems even after the pandemic,” Mary Jade Roxas Divinagracia, deals and corporate finance managing partner of PwC Philippines, said in a news conference on Monday.
Divinagracia said these concerns were also compounded by global issues.
Economists have noted rising fuel prices, the conflict in Ukraine, and disruptions by the pandemic as among the “external challenges” that could slow down the economy next year.
“All these things combined are actually giving some of our business leaders [cause for concern],” Divinagracia said.
Fight corruption first
The Marcos administration, however, anticipates domestic demand to eventually mitigate those risks, even as it has tempered its growth target to 6.5 to 7.5 percent, from the already downscaled 7 to 8 percent target of the previous administration.
The survey also showed that 67 percent of its 119 respondents believe the government should give more priority to fighting corruption than to attracting foreign investments.
“In the past three years, issues such as undocumented health spending, misallocated healthcare funds, and procurement of outdated equipment [had] surfaced and have not been resolved,” read a briefer on the survey.
Earlier this year, Transparency International flagged the Philippines as a “significant decliner” in its Corruption Perception Index.
That annual index, released in January, placed the Philippines at 117th out of 180 countries, down two places from its ranking the previous year.
“While anticorruption initiatives were not laid out during the President’s State of the Nation Address in July, the President himself said that the use of government funds will follow the law,” the briefer noted further.
Other concerns in the CEO Survey are lower foreign and domestic investments (38 percent), political uncertainty (30 percent), inflation (29 percent), rising fuel prices (28 percent), and lower quality of education (27 percent).
The respondents also raised the issues of rising government debt (17 percent), higher interest rates (14 percent), the conflict in Ukraine (13 percent), the threat of new coronavirus variants (8 percent), delayed government releases (8 percent), and lack of fiscal support for industries hit hardest by the pandemic (6 percent).
—WITH A REPORT FROM INQUIRER RESEARCH
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