Financial experts said the Philippines should lessen its reliance on remittances and business process outsourcing (BPO). They also said the country should focus more on improving other sectors which can protect the economy from external risks.
According to the analysts from the macroeconomic research and forecasting unit of the Ateneo de Manila University Economics Department called Eagle Watch, the country should develop other segments that can help sustain the growth of the economy.
Fernando Aldaba, Senior Fellow at Eagle Watch, said BPO and remittances from overseas Filipino workers are sustaining the momentum of the economy. He said other sectors should also be developed to maintain this growth should challenges arise.
Last year, the economy of the Philippines posted a 7.2 percent growth. As for this year’s first quarter, the economy grew 5.7 percent and it was found that the bullish economy is being driven by strong consumption in the private sector.
The current accounts of the Philippines are also buoyed by remittances and BPO receipts which help the balance of payments (BOP) stance of the country to remain positive. The BOP is the complete record of all economic transactions of a country across the globe.
Aldaba noted that if the growth drivers are further developed, the Philippines will not have to worry as much on the detrimental effects of future challenges.
Alvin Ang, another Eagle Watch analyst, cited the effects of external changes such as the new policies in the Middle East. He said these can affect the flow of remittances into the country.