The business sector in the Philippines is feeling less optimistic at the start of 2025, according to the Bangko Sentral ng Pilipinas (BSP). The latest Business Expectations Survey (BES) shows that business confidence dropped due to a mix of factors, including post-holiday slowdowns, inflation worries, and reduced demand.
What’s Happening?
Confidence is down – The Confidence Index (CI) fell to 31.2% in Q1 2025, compared to 44.5% in the last quarter of 2024. Businesses are less hopeful about economic growth.
Why are businesses worried?
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Less demand after the holidays
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Slower business activity
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Fear of rising prices (inflation)
Who is still optimistic?
While most businesses feel less positive, the construction sector remains steady in its outlook.
Looking Ahead: A Brighter Q2?
Good news! Businesses expect things to improve in the 2nd quarter of 2025, with confidence rising to 45.4%.
For the next 12 months, companies remain hopeful, with a 56.4% confidence index, unchanged from Q4 2024.
What About Inflation?
Businesses expect prices to rise but stay within government targets (2-4%):
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Q1 2025: 3.2%
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Q2 2025: 3.3%
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Next 12 months: 3.4%
Survey Details
Conducted from Jan 8 – Mar 1, 2025 1,527 companies surveyed nationwide
Covers 17 regions, including Metro Manila and beyond
Despite a slow start to 2025, businesses are hopeful for a better Q2. What do you think? Will the economy bounce back? 
