Mid-term growth projections across key industrial and service sectors remain positive as Filipino enterprises prepare for a medium-term turnaround despite immediate margin pressures caused by energy price hikes and currency fluctuations.
The Bangko Sentral ng Pilipinas (BSP) reported in its latest Business Expectations Survey (BES) that while business sentiment stayed in negative territory in September 2026, corporate leaders foresee improving economic conditions over the next three and 12 months.
Business operators highlighted expectations of heightened consumer spending during the upcoming holiday season and rice harvest periods as primary drivers of confidence for the next quarter.
Over a 12-month horizon, firms identified significant expansion opportunities across healthcare, education, tourism, financial services, real estate development, and trade-related activities.
The BSP noted that more firms within the industry sector are preparing to expand their operations, signaling structural confidence despite short-term headwinds.
Current operational challenges stem primarily from elevated fuel and energy expenses, peso depreciation, weather-related operational disruptions, and ongoing geopolitical tensions in the Middle East.
Survey respondents projected that inflation will remain above 4 percent over the coming year, exceeding the central bank’s target band of 2 percent to 4 percent.
While the 12-month employment outlook remains net-positive, hiring sentiment moderated slightly compared to the previous survey iteration.
To unlock stronger growth trajectories, business leaders pointed to lower inflation, streamlined administrative procedures, potential de-escalation of Middle East conflicts, and renewed investor confidence as key catalyst factors.
The central bank affirmed that it continues to track global and domestic developments—including Middle East stability and consumer spending trends—to inform upcoming monetary policy adjustments.