BPO, OFW spending could help battle inflation, says expert
MANILA, PHILIPPINES — Increased spending on the Business Process Outsourcing (BPO) sector, as well as by the Overseas Filipino Workers (OFW), could help the economy rise above inflation.
During the ADR Stratbase Economic Outlook for 2023, Managing Director of eManagement for Business and Marketing Services Jonathan Ravelas said that focusing on the “big picture” will help the government find relief from the high inflation rates in the country.
Last week, the Philippine Statistics Authority (PSA) reported that inflation in January accelerated to its 15-year high of 8.7%.
Aside from prioritizing BPO and OFW investments, Ravelas also suggested opening the retail sector to foreign brands and developing the tourism, gaming, manufacturing, and mining sectors.
Meanwhile, the economist stated that the Philippines should watch out for geopolitical tensions such as the war in Ukraine, the middle kingdom trap of China, and the possibility that China could attack or place a blockade on Taiwan.
According to another economist and Ateneo de Manila University Department of Economics Chairperson Alvin Ang, these concerns could pressure the Philippine economy to “squeeze growth, more so double its growth” in just a few years.
Ang estimated that under a business-as-usual scenario, doubling the country’s GDP (Gross Domestic Product) growth could take 11 years or at least two administrations.
