By Jenica Faye Garcia | The Manila Times
April 28, 2023
The Philippines is expected to grow per capita gross domestic product (GDP) by $7,400 in 2032 and is likely to become one of the emerging markets of the world, the chief economist of S&P reported.
S&P Global Market Intelligence Asia-Pacific Chief Economist Rajiv Biswas gave this assessment during the virtual Trade and Industry Development Talks 2023 saying that this “is a very big change in the position of the Philippines in the global economic order.”
Biswas said that one contributing factor is the Philippines’ integration to the Regional Comprehensive Economic Partnership that will take effect in June.
“This helps the competitiveness of the Philippines to be part of the Asian manufacturing supply chains,” he said.
Another major factor is the information technology-business process outsourcing (IT-BPO) industry, which is expected to generate more jobs in the coming years.
“The rapid growth in exports from the IT-BPO sector has also become an important boost for the Philippines economy and for total exports,” said Biswas.
The Bangko Sentral ng Pilipinas reported that IT-BPO exports revenues rose by 9.1 percent or to $27.4 billion in 2022 from $25.1 billion in 2021.
In terms of jobs, the IT Business Process Association of the Philippines reported that there was a total of 1.7 million employees in 2022 with revenues for the sector rising to $32.5 billion.
“The long term outlook for the IT-BPO sector in the Philippines is for continued high growth, helped key competitive advantages of a well-educated workforce and English language proficiency,” said Biswas.
He stressed that the growth is also a big responsibility for the Philippines to compete with other emerging markets.
“I think it also means a much greater responsibility for the Philippines as a nation in terms of being a leader amongst emerging market nations which I think what us something to think about is how [the] Philippines roll into this new world,” said Biswas.