Overseas Filipino Workers (OFW) remittances and Business Process Outsourcing (BPO) investments play crucial role in achieving the six to seven percent target growth of the Philippines’ Gross Domestic Product (GDP), an economist has said.
With more than 10 million Filipino workers based in other countries, a three to five percent increase in their remittance is expected. Villegas added that as of last year, these OFWs had remitted a total of P28 billion, Sun Star quoted Economics professor Bernardo Villegas of the University of Asia and the Pacific as saying.
The percentage increase is an annual pattern that they have observed for the past 10 years and have yet since to wane, the report said.
During the Annual Economic and Capital Markets Briefing of First Metro Investment Corporation at Marco Polo Hotel, he also reportedly said the BPO industry is expected to still increase its performance by 15 to 16 percent which is more than the P22 billion that the industry had earned for 2016.
He was quoted as saying that it is a great advantage for the Philippines to have the youngest English-speaking population in the Asia Pacific.
According to Villegas, around 50 percent of the country’s population is composed of 23 years old and younger individuals.
The BPO had started to be more flexible and offers more services to their clients that are not only limited to voice services. The industry has also long started accepting animation, accounting, and legal services among others which makes it more diverse, said the news portal.
United States of America President Donald Trump had earlier expressed his plan to bring back all the American jobs in other countries to America just so they can benefit first from it.
Villegas reportedly said people from the BPO industry should not be alarmed by this.
“Americans are very competitive in manufacturing but not in customer service. They (company owners) pay 10 times more to their local workers who do these kinds of jobs,” Villegas reportedly said, adding that these BPO companies investing in the Philippines do so because of the amount of money they can save.
He added that it’s not possible for the pulled out BPO in the Philippines to flourish on its own back in America.
He also reportedly said that Trump’s plan to deport undocumented workers back to their countries can actually be beneficial to other countries’ economy.
These undocumented workers bring in millions of dollars for America and if Trump’s plan is pushed through, this may cause possible recession to the country’s economy, reported Sun Star.