Europe-PH News

MANILA, Philippines — Majority of European and Philippine firms in the country expect to see growth in trade and investment over the next 12 months, according to a survey conducted by the European Chamber of Commerce of the Philippines (ECCP).

The 2025 Business Sentiment Survey Report, presented during the ECCP’s 2026 Philippine Economic Outlook forum yesterday, showed that 70.3 percent of European and Philippine firms remain optimistic about their operations in the country and expect an increase in trade and investment activity over the next 12 months.

It also showed that 26.7 percent anticipate stability, while only 2.9 percent expect a decline.

For the next two to four years, the survey showed that 78.5 percent of respondents anticipate growth in their trade and investment activities in the Philippines, reflecting strong confidence in the country’s long-term economic prospects.

Meanwhile, 20.3 percent expect stable trade and investment activity over the next two to four years.

The survey also showed that European companies generally view the Philippines as an increasingly attractive investment destination compared to other regional markets.

The results showed that 40.1 percent of respondents noted improvements in the country as an investment destination, while 28.5 percent reported stability, and 29.1 percent experienced a diminished appeal.

“While improvements in regulatory measures and infrastructure have been noted, businesses continue to encounter significant obstacles that affect their operations,” the ECCP said.

The survey showed that 90.1 percent of respondents identified significant barriers that continue to impact trade, investment or business operations in the Philippines.

“These findings imply that sustained efforts to streamline regulations, reduce bureaucratic inefficiencies and enhance transparency will be essential to strengthen investor confidence and support the country’s competitiveness in the regional and global market,” the ECCP said.

The survey showed that the European Union (EU) - Philippines free trade agreement  (FTA) is important to a majority of European firms in terms of planning business operations.

In particular, nearly half or 48.3 percent of respondents said the FTA is important or very important, while around 31.8 percent view it as fairly or slightly necessary.

The ECCP said the findings underscore the need for holistic, coordinated and sustained interventions to unlock the Philippines’ full trade and investment potential.

“By addressing these barriers and building stronger institutional and policy frameworks, the country can create a more conducive environment for business, enhance competitiveness and strengthen its economic partnership with the EU,” the ECCP said.