BPO earnings to grow by 9% in 2023, 2024
MANILA, PHILIPPINES — The Bangko Sentral ng Pilipinas (BSP) sees the increase in Business Process Outsourcing (BPO) earnings to remain steady at nine per cent in 2023 and 2024.
According to the BSP’s Monetary Policy Sub-Sector Officer-In-Charge Dennis Lapid, they expect more foreign direct investments (FDI) and speculative funds to enter the country in the next two years — reaching between US$11 billion and US$12 billion —due to the structural reforms undertaken by the government.
“This is driven mainly by the better than earlier anticipated actual data for key BOP (balance of payments) accounts. These include the latest data on the FDIs, business process outsourcing, and the tourism and travel-related accounts,” Lapid added.
The BSP official also emphasized that the sustained build-up of international reserves would reinforce positive investor sentiment and increase investment flows in the country, despite the current challenging global environment.
For his part, Rizal Commercial Banking Corp. Chief Economist Michael Ricafort said that FDIs “remain one of the bright spots and one of the major pillars of the economic recovery” post-COVID-19.
The economist added that the passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act and the country’s membership in the Regional Comprehensive Economic Partnership (RCEP) would help attract more FDIs to locate in the country.
