The Philippines is ranked third in the world and number one among the Association of Southeast Asian Nations (ASEAN) for business confidence, according to a recent report by consulting and market intelligence firm Grant Thornton International.

Despite a drop of 2 percentage points from last year, the overwhelming majority (86 percent) of Philippines business leaders are optimistic about the economic climate in the next 12 months. The percentage of business leaders expecting an increase in exports and business profitability also rose from 20 percent to 27 percent and from 22 percent to 38 percent, respectively.

The Grant Thornton Internal Business Report (IBR), a quarterly survey of more than 2,600 business leaders worldwide, showed that more than half (56 percent) of Philippines business leaders expect employment to increase. This figure is up from 14 percent in 2014.

The Grant Thornton report revealed that business confidence in the ASEAN region rose from 23 percent to 40 percent in just three months. After the Philippines, Indonesia (68 percent) and Thailand (36 percent) improved their rankings among ASEAN members. Worldwide, Ireland (92 percent) showed the most promise, followed closely by India (89 percent). Meanwhile, business confidence hit a two-year low in Japan (-17 percent) and an all-time low in Argentina (-38 percent) and Brazil (-18 percent).