Swiss banking giant Credit Suisse trimmed its GDP growth forecast for the Philippines due to the declining growth of the country’s business process outsourcing (BPO) sector. The decelerating BPO revenue growth could deduct 0.3 percentage point from the GDP in 2018. Credit Suisse economist Michael Wan slashed the country’s GDP growth forecast to 5.9% from the original target of 6.2% next year. The BPO sector’s slowdown could also affect Credit Suisse’s 6.1% GDP growth forecast for this year. The bank added that the BPO industry of the Philippines is facing a combination of cyclical and structural headwinds. Credit Suisse said full-time employment in the industry could grow a mere 3.7% due to automation between this year and 2024 from 12.4% CAGR over the past five years.
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