by: Sarah Joson
Thursday, April 23, 2015 |
Rajiv Biswas, Chief Economist for Asia-Pacific at research and consultancy agency HIS said the Philippines could grow at an average rate of 5.5 percent annually from 2016 to 2020. IHS has projected that total gross domestic product (GDP) per person in the Philippines will increase from almost $3,000 in 2015 to $6,000 by 2024.
This increase in per capita GDP positions the country as one of the largest consumer markets in Southeast Asia. Biswas also said this would make the country a destination of choice for foreign investments, particularly to its manufacturing and services industries.
Last year, the Philippines posted a 6.1-percent growth - lower than the 7.2 percent posted in 2013. For this year, the government is eyeing to reach a 7-8 percent growth until 2016.
The chief economist also noted that the IT- business process outsourcing sector and continuous inflow of remittances from Filipinos working abroad remain as the key growth drivers of the country. Furthermore, he noted that the attractiveness of the Philippines as a BPO hub has long been reinforced by the large pool of skilled, English-speaking workforce. He also said export revenues from the IT-BPO sector had increased twice over to $18 billion from 2008 to 2014 and the number of workers employed by the sector has surpassed the one-million mark. The firm also expects the IT-BPO industry to reach 1.3 million employees by 2016.
The bullish IT-BPO sector is also said to be fuelling development in several cities such as Manila and Cebu - both ranked as among the world’s leading outsourcing hubs.
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