German companies operating in the Philippines remain optimistic about the country’s economic prospects, with most respondents in the latest AHK (German Chambers of Commerce Abroad)’s World Business Outlook Survey citing continued growth and investment opportunities despite persistent policy and labor challenges.

According to the German–Philippine Chamber of Commerce and Industry (GPCCI), the survey showed that 47 percent of German firms view their current business situation positively, while 49 percent expect stable development over the next 12 months.

GPCCI/AHK Philippinen belongs to the international network of German Chambers of Commerce Abroad (AHKs) represented by 150 offices in 93 countries. The official representative of German businesses in the Philippines, GPCCI is comprised of some 300 members.

In the said survey, 69 percent of respondent firms anticipate continued momentum in local economic growth, while over half see steady trends in local investment and workforce stability.

Leading investment destination

“German businesses continue to express continued confidence in the Philippines as a leading destination for investment and growth,” said GPCCI president Marie Antoniette Mariano.

“To turn this confidence into lasting economic gains, the government must accelerate reforms that reinforce transparency, ensure policy coherence, and enhance administrative efficiency to improve the ease of doing business,” she said.

Mariano emphasized that a “stable, predictable, and accountable governance environment” built on clarity and fairness would help deepen investor confidence and attract long-term investments.

While sentiment remains positive, German businesses cited several risks that could dampen outlooks over the next year.

Top concerns

Among the top concerns cited by respondents were economic policy uncertainty, legal predictability, and the shortage of skilled labor — issues that mirrored the challenges highlighted in earlier GPCCI surveys.

Other operational risks include tax administration, climate threats, and political challenges, which firms said may hinder expansion and investment decisions.

“These concerns reflect the nuanced business environment in the Philippines where optimism about growth is balanced by structural and policy-related challenges,” said Dr. Marian Majer, GPCCI Policy and Advocacy Chairperson.

“This sentiment underscores the importance of fostering a more predictable policy environment, enhancing regulatory excellence, and ensuring consistent implementation, as well as prioritizing education and workforce development to support sustained investor confidence and inclusive progress,” he said.

Minimal impact from U.S. trade policies

Survey results also showed that German firms in the Philippines reported minimal impact from US trade policies, with some respondents noting opportunities for market diversification and export growth, despite higher shipping and customs costs.