Despite a projected slow economic growth, Business Process Outsourcing (BPO) receipts in the Philippines are seen to maintain momentum this year given the demand for virtual employees post-pandemic, according to state think tank.
The Philippine Institute For Development Studies (PIDS) has forecast a slow economic growth of 4.5-5.5% in 2023. This is below the government’s target of 6-7%.
“There’s still a lot to do, particularly in energy. Internet connection is also quite low. If we are banking on BPO outsourcing, we need to invest in and improve internet connectivity, particularly as the market is going towards digitalization. Infrastructure development is the main solution,” Department of Finance Assistant Chief Economic Counselor Marites Oliva said in a webinar organized by PIDS Thursday.
PIDS says the Philippines needs to find new growth opportunities to heal from economic scarring from the pandemic.
“It cannot be overstated that the productivity losses from the pandemic have to be reversed. An immediate way to do this is to continue the prioritization of infrastructure spending, which helps address scarring by enhancing the country’s physical capital, boosting long-term growth, while also having short-run multiplier effects,” PIDS Senior Research Fellow Margarita Debuque-Gonzales stressed.