Optimism among mid-market or medium-sized businesses in the Philippines improved to 66 percent in the second quarter of 2024 from 61 percent in the first quarter, according to Grant Thornton’s International Business Report (IBR).
The rise underscored the positive outlook of Philippine mid-market businesses, despite the economic challenges and uncertainties on both the global and domestic fronts.
Mid-market businesses are demonstrating confidence in their financial performance, with 64 percent expecting an increase in revenue over the next 12 months, up from 60 percent in the first quarter.
This aligns with the global average and slightly outperforms the Asia Pacific average of 63 percent. Despite some fluctuations, the steady revenue expectations reflect the resilience of the Philippine economy.
Profitability expectations remain robust, with 83 percent of mid-market firms anticipating higher profits in the second quarter of 2024, although this represented a slight decrease from 85 percent in the first quarter.
Trends indicate that businesses are focused on maintaining strong profitability margins through efficient operations and cost management, even amid economic uncertainties.
Employment intentions among mid-market businesses in the Philippines decreased to 70 percent in the second quarter of 2024 from 80 percent in the first quarter.
Despite the decline, employment intentions remain stronger than the regional and global averages of 48 percent and 55 percent, respectively.
The cautious approach to hiring reflects ongoing economic uncertainties and a reassessment of workforce needs considering current market conditions.
Philippine mid-market firms are also poised to make significant investments in key areas, identifying key investment priorities in people, research and development (R&D), technology and branding.
