IT-BPO exports to boost Philippine economy in 2024
MANILA, PHILIPPINES — The fast-expanding Information Technology and Business Process Outsourcing (IT-BPO) industry is expected to aid broader economic momentum in the Philippines this 2024.
Capital market company S&P Global Market Intelligence said that the Philippine economy could grow at 5.6%, driven by strong private consumption spending, an upturn in government infrastructure spending, improving remittance inflows, and exports from the outsourcing sector.
Supporting this forecast, the industry group Information Technology-Business Process Management Association of the Philippines (IBPAP) sees exports from IT-BPO services to reach $37.87 billion this year, up 7% from 2023.
This would generate over 800,000 jobs, lifting total employment to 1.7 million. Rising overseas demand, policies enabling remote work, and ongoing digital shifts by global firms drive growth.
The industry may contribute 7-8% to the Philippine GDP expansion in 2024, added IBPAP.
Consequently, S&P Global revealed that the Philippine economy could increase from USD 440 billion in 2023 to USD 800 billion in 2030. By 2033, the country is also forecasted to become one of Asia-Pacific’s one trillion-dollar economies, joining mainland China, Japan, India, South Korea, Australia, Taiwan, and Indonesia.
Rising household incomes will catalyze growth in consumer spending and attract foreign direct investment across economic sectors.
The recently implemented Regional Comprehensive Economic Partnership (RCEP) trade agreement will also boost foreign investment in manufacturing and infrastructure. As a low-cost manufacturing hub within RCEP, the Philippines is well-positioned to benefit from this agreement.
