German firms stabilize their outlook despite political and bureaucratic challenges

In November 2025, the autumn survey “AHK World Business Outlook” was published, providing new insights into the mood of German companies with branches in the Philippines. The results show that companies continue to place great emphasis on the country and regard it as a resilient and strategically important location for investment and business activities.

Sustained by a robust GDP growth forecast of 5.5–6 %, the Philippines continues to present opportunities for expansion, even as companies navigate a more complex global and domestic environment. The overall tone of the survey reflects a forward-looking and balanced outlook, with firms adjusting expectations while reaffirming their long-term presence in the market.

Confidence remains strong, even as expectations change

Compared to the beginning of the year, the autumn survey shows a recalibration of expectations:

47 % of companies report a positive business situation and 45 % report a stable business situation – slightly less than in the spring survey, but still a comparatively optimistic and stable business trend.
45 % expect growth in the coming year, while almost half expect business development to remain stable – a stronger shift towards stable business development.
A more conservative shift can also be observed in investment and employment plans, with local investment levels and current employment being maintained.

This shift suggests that while companies are slightly less optimistic, they are adapting to current conditions and continue to have a positive outlook for the Philippines.

The Philippines remains a strategic location

Despite global and national challenges, the Philippines continues to be seen as a reliable location for (regional) growth. A full 90 % of companies participating in the survey expect local economic development to remain stable or improve over the next 12 months, and many continue to invest in the development of their workforce and the continuity of their operations. The country's strategic location, growing consumer base, and improving infrastructure remain attractive to German companies, particularly those in the service, manufacturing, and trade sectors.

Key challenges: politics and talent

The survey highlights several areas where improvements could further strengthen investor confidence:

The consistency of economic policy remains the most important concern, with companies wanting a clearer and more predictable regulatory environment.
Legal certainty and access to skilled labor are also cited as key factors influencing business decisions.

These challenges are not new, but their persistence underscores the importance of ongoing reforms and dialogue between the public and private sectors.

Minimal impact from US trade policy

Most companies report that recent changes in US trade policy have had little direct impact on their business operations in the Philippines. Some even see opportunities for diversification and access to new markets, strengthening the Philippines' role in broader regional strategies.

Conclusion: Stability with a strategic focus

Although the tone of the fall 2025 survey is more cautious than in previous editions, it reflects a mature and strategic approach by German companies in the Philippines. Rather than reacting to short-term fluctuations, companies are focusing on long-term resilience, operational stability, and regional integration.