Still more than four months away from the end of 2026, Filipino businessmen appear to have already resigned themselves to a lackluster full-year performance as they look ahead to a better 2027.
Donald Lim, president of the Management Association of the Philippines (MAP), said business optimism for 2027 stems from several favorable factors that could bring greater predictability and fewer distractions, allowing companies to focus on growing their businesses.
“We’re hopeful for 2027 because in 2026 I think the book is already closed. In a way, we know there’s a little blip in terms of our businesses and our revenues but the economy is very slow and our peso is weak,” said Lim.
As a result, businesses may have already written off the fourth quarter, which is normally the highest-grossing quarter of the year. From a planning perspective, Lim said businesses already have a clear picture of their expected performance at this point.
Unless something happens to make consumers more optimistic and willing to spend, Lim does not expect a vibrant Christmas season this year.
“There’s not enough money?,” he said.
This means those who used to spend Christmas abroad may opt to spend the holidays locally or travel to nearby destinations. Lim noted, however, that even Siargao, a popular beach destination, has become expensive.
“We’re not saying it’s over. But of course, business is always hopeful. But I can’t see the math. If the money doesn’t go down, where will the consumer get it?” he asked.
Growth factors in 2027
Factors that could drive economic activity in 2027 include a potential resolution of the US-Iran crisis. Once the conflict is resolved, business operations could normalize, while fuel prices and the peso could stabilize.
Domestically, Lim sees the completion of the impeachment trial of Vice President Sara Duterte as a potential end to the uncertainty that has weighed on businesses in 2026.
Regardless of the outcome, Lim said the conclusion of the impeachment proceedings would be positive for businesses because it would remove the uncertainty that has been affecting business decisions.
“Business should always have predictability and certainty so we can plan. You can say it will be a bad year-end we’ll have a bad year. That’s okay, but we can plan. That’s how we are. But if it’s uncertain, it’s hard,” he said.
Consumer demand could also receive a boost from higher spending in the run-up to the 2028 elections.
As businessmen, Lim said they have no choice but to plan ahead.
“That’s how it is,” he said, adding, “We have to be more resilient in terms of our thinking that hopefully next year it’s better. Let’s plan for some growth and a little bit more so that we can move, otherwise, it’s hard to plan.”
For now, Lim said the overall economy remains weak, with consumers having limited room to spend, resulting in subdued consumption.
“They don’t have a lot of spending power. So because of that, consumption is down,” he said.
The removal of the travel tax is expected to help spur economic activity, Lim said. At the same time, the government is pushing for a higher tax on vape products as part of its revenue-raising measures.
“I would be in favor of increasing it, because theoretically, it’s a luxury if you do it. You can’t eat it and you’re spending your money on paper. It’s for the kids, too,” he added.
