BSP Foresees Consumers and Entrepreneurs to be More Optimistic After Q4 of 2021

Banko Sentral ng Pilipinas (BSP) conducted a survey foreseeing entrepreneurs and consumers in the Philippines to be hopeful as the country further re-opens the economy.

Last Friday, BSP reported the development in confidence level recorded in the fourth quarter Business Expectations Survey (BES) and Consumer Expectations Survey (CES) approaching the next quarter, together with the next 12 months. 

The confidence index (CI) of firms for the upcoming quarter rose to 52.8% from the 31.9% output in the previous survey.

BSP stated that respondents credited their hopeful view to the broader availability of vaccines, lowering quarantine restrictions, and surge in sales and orders. 

BSP further explained that they specified the improvements in the economic condition paired with the possibility of recovery losses. The respondents quoted the same factors regarding their improved business sentiment for the next 12 months together with the expected return of business operations. 

The CI for businesses rose to 67.6%, compared to the last BES of 56%.

At present, CES yielded indexes of 9.3% and 23.6% for the next quarter and year. BSP mentioned that there is an improvement from 2.7% and 18.6% CIs logged in the CES last year. 

BSP expressed, “Respondents attributed their optimism to the following expectations: (a) availability of more jobs and permanent employment, (b) additional and high income, (c) effective government policies and programs, and (d) good governance.”

According to Chairman of the Philippine Retailers Association (PRA) Paul Santos, the holidays will be better this year for both businesses and consumers as the restrictions ease due to the wider availability of COVID-19 vaccines. 

However, Santos flagged concerns over the more transmissible Omicron variant. He stated that establishments could be better prepared in reacting to new coronavirus variants given the experience from the previous variants.