The Philippines’ GDP grew nearly 7% in 2010. The economy weathered the 2008-09 global recession better than its regional peers due to minimal exposure to securities issued by troubled global financial institutions, lower dependence on exports, relatively resilient domestic consumption supported by large remittances from four-to five-million overseas Filipino workers, and a growing business process outsourcing industry.
Economic growth in the Philippines has averaged 4.5% per year since 2001, when former President Arroyo took office. Her stance towards economic improvement has remarkably re-emerged and restored the economy. Major infrastructures arose in the metropolitan areas of Luzon, while Metro Cebu also became an attraction for foreign and local investors. It was in her time that the Philippines ventured into a new economic advantage in the form of the Business Process Outsourcing or BPO industry.
And now, the Philippines are a net services exporter, and the BPO sector has been contributing to the country’s balance of payments (BOP) as much as the remittance of inflows from overseas Filipinos. The Philippine economy is projected to expand by 5% in 2011 with the business process outsourcing (BPO) industry expected to play an important role, according to the World Bank.
The rapidly rising BPO sector is building on the natural comparative advantages of the Philippines, namely a cost-competitive platform built around a young English-speaking, technology-savvy labor force, readily available telecommunication infrastructure, and a favorable economic zone environment. Philippine BPO services are evident in communications, technology sectors, business, professional and technical industries. It utilizes human capital and information technology (IT), which has bucked the downward trend of the global financial crisis.