With GDP growth coming in at 5.8% for 2015, after averaging 6.2% from 2010-14, the Philippine economy is establishing a record of stable high growth rates, and the long-term growth outlook has improved. The BPO sector appears set to continue snowballing and increasingly leading growth across the economy, and the drop in oil prices is an important positive change, the effects of which are likely to continue to play out for years.
The banking sector is in the midst of a strong growth phase as economic development and use of banking services has been extended to traditionally under-banked areas in the Philippines, and a tight fiscal policy has led to lower inflation and growing willingness to hold savings in bank deposits.
The BPO sector’s contribution to GDP has risen in tandem with the number of companies setting up operations in the country. The industry accounted for just 0.075% of GDP in 2000, rising swiftly to reach 2.4% in 2005, 4.9% in 2011 and an estimated 6% in 2015.
The Philippines’ transportation system is in the midst of a major overhaul across all segments. Strong financial commitments by the government, along with new PPP programmes, look to be providing the catalyst needed to get many big-ticket infrastructure items off the drawing board.
Since 2010 the country has made a concerted effort to attract more visitors, with intensive investments in marketing and infrastructure to support the industry. It’s paying off: foreigners are increasingly staying longer and spending more during their visits.