BPO, IT seen to sustain Philippines’ growth amid global slowdown
MANILA, PHILIPPINES — The Philippine Business Process Outsourcing (BPO) and Information Technology (IT) sectors are expected to help sustain the country’s economic growth amid a global slowdown, according to Socioeconomic Planning Secretary Arsenio Balisacan.
In a recent economic briefing, Balisacan said the country is targeting a 6 to 7 percent increase for 2023.
He also highlighted the resilience of the BPO and IT sectors to global economic fluctuations.
“Domestic services account for almost 3/4 of our growth. That is not vulnerable to global shocks. Even [when] there is a global slowdown, that sector can be quite robust,” Balisacan said.
BPOs have been a cornerstone of the Philippine economy, employing millions and contributing significantly to the country’s GDP.
The IT sector, thriving on innovation and global demand, has also seen substantial growth.
Together, these industries have shown resilience against global market challenges, making them key drivers in the country’s economic strategy.
Along with a recovering tourism industry, the BPO and IT sectors are expected to be among the country’s key economic development drivers.
The Philippine GDP growth expanded to 5.9 percent in the third quarter of 2023. This is a significant increase from 4.3 percent in the previous quarter.
Balisacan explained that the GDP needs to grow at least 7.2% in the fourth quarter for the country to hit the government’s target of at least 6 percent growth for 2023.
Looking ahead to 2024, Balisacan emphasized the need for substantial foreign investments to enhance productivity and job quality.
Balisacan said the government’s focus is on attracting investments that will create high-quality, permanent jobs and complement the push in infrastructure.
“To produce the kind of 8 to 5 work… permanent jobs, those can happen only if companies, businesses are investing their building plants, factories, equipment, machinery that our labor force can work at,” he explained.
