European businessmen expect the Philippine economy to make a rebound next year with the growth drivers electronics, agri-business, tourism, business process outsourcing (BPO), property development, and retail performing better.

“We are looking at 2010 with guarded optimism,” said European Chamber of Commerce of the Philippines (ECCP) executive vice president Henry Schumacher.

”Investors may have good reasons to be cautiously optimistic on the country’s prospects next year with most of the six industries seen to perform better next year,” Schumacher said after hearing the presentation of the leaders of these major growth drivers at the ECCP’s recent forum dubbed Economic Outlook 2010: The Philippine Business Environment in Light of Developments in the World Economy.

Industry leaders who presented their respective projections for 2010 included Philippine Agricultural Development and Commercial Corp. president Mariz Agbon; Business Process Association of the Philippines chief executive officer Oscar Sañez; Jones Lang Lasalle Philippines Inc. chairman Jose Fernando Camus; Semiconductor Electronics Industries in the Philippines Inc. chairman Arthur Young; Philippine Travel Agencies Association president Ma. Paz Alberto, and Philippine Retail Association vice president Paul Santos.

Young said the electronics industry, which directly employs 450,000 individuals and another 1.20 million indirectly, expected a double-digit growth in 2010 as it rake in between US$ 29 billion and US$ 30 billion in export revenues.

This, Young said, would help the industry recover lost footing in 2008 and 2009 when the industry suffered declining export receipts.

Young sees the uptick in consumer spending in the United States and increase in the purchase of hybrid cars, smart phones, PDAs, laptops, flat panels and medical equipment in fast-growing markets such as China and India as good reasons to be optimistic.

Sañez, meanwhile, said revenues from the BPO sector was expected to grow to $ 9.50 billion in 2010 and then $ 12 billion in 2011, especially with big investments spreading rapidly to the countryside.

Aside from the voice segment, growth would be strong in back-office services such as publishing, finance, corporate services, design, and creative services, he said.

Agbon sees positive outlook over the next five years as businessmen from Qatar, Saudi Arabia, Bahrain, Kuwait, and Korea expressed interest to invest in the country’s agriculture sector.

Agbon said the 2005 to 2010 medium term plan of creating two million hectares of agricultural land was also almost accomplished with 1.60 million hectares already covered.

On the tourism side, Alberto said there will be a notable expansion in tourist arrivals over the next two years with major hotels slated to open next year. Arrivals, both of foreign visitors and balikbayans, could go up by 16 percent as they come here to enjoy shopping; eco-tourism; and from meetings, incentives, conventions, and exhibitions.

The passage of the new Tourism Law, Alberto said, would help the country address its deficiencies in promotions, infrastructure and product diversity.

Camus said tourism and BPO firms would help the property sector intensify its growth with the need for more Grade A office spaces for the outsourcing firms, as well as new hotels and airports to service the influx of tourists.

According to Santos retail expansion in 2010 will be more pronounced in the provinces as retailers have noticed that people are willing to spend money where they live if given the opportunity.

”Consumer spending will also go to higher gears due to the 2010 general elections,” he added.(PNA)
RMA/bac/utb