by: Sarah Joson
Tuesday, February 26, 2013 | Outsourcing News |
The February issue of The Market Call, a renowned publication, predicted that the Philippine economy will post robust growth this year, based on recent gross domestic product (GDP) results.
Some of the factors identified as key contributors for economic growth are the government outlays for infrastructure, disbursements on the upcoming election, and marginal increase in electricity sales last December.
Meanwhile, the publication stated that during Q4 last year, GDP grew 6.8 percent. Moreover, it noted that better weather and harvests will be able to counter the fluctuating prices of crude oil, making inflation settle at three percent.
Even with the positive forecasts, The Market Call advised that the valuation of the peso still poses a threat to the country’s economic growth, adding that it mainly affects investors involved in the business process outsourcing (BPO) industry and overseas Filipino workers (OFW) for remittances.
It is also projected that the strong performance of the peso could result to an exchange rate below P40:$1. Meanwhile, the recent credit upgrade from Standard and Poor’s (BB+ "stable" to BB+ "positive") puts the Philippine peso at a favourable position.
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