Philippine economy forecasted to grow 6%, BPO sector key driver

Citi expects the Philippine economy to grow by around 6% in 2025, driven partly by the business process outsourcing (BPO) sector.

Amol Gupte, Citi Asia South Head, noted that the BPO industry will continue to create jobs and move up the value chain, positioning the Philippines alongside India as a key player.

The IT-BPM industry ended 2024 with $38 billion in export revenue and 1.82 million full-time employees, aiming for $59 billion in exports and 2.5 million employees by 2028.

However, the rise of artificial intelligence poses a risk to job security within the IT-BPM sector.

Philippine banks are expected to maintain strong financial performance with a net profit increase of 6.4% as of September 2023, benefiting from improved sovereign ratings and easier access to international financing.