Well, we have a result – the presidential race in the Philippines has been decided. With a vast majority of the vote and all challengers withdrawing, Rodrigo Duterte has emerged as the people’s choice.
Much has been said in the press about the impact this new President will have on the future of the Philippines. He’s said some fairly controversial things around how he will deal with organised crime and criminal activity.
What hasn’t garnered as much attention is what he is planning to do with the economy; the issue that we are most interested in.
Diversify has had a strong presence in the Philippines since 2011 and we have worked in this time to build a rewarding and fulfilling work environment for our Filipino employees.
In our view, the new President won’t be taking a different approach to the economy and to what is currently working well for offshore service providers. In fact, we are confident that he will continue to drive the economy and support the offshoring sector which has been a key factor in the Philippines’ economic success.
During his election campaign, Rodrigo Duterte talked about opening up the economy to foreigners by easing constitutional restrictions. He will most likely adopt a pragmatic approach to the economy.
The perception of the Philippines economy has shifted dramatically over the past few years, with debt rating upgrades and praise from investors and the World Bank.
The economy has been transformed, and the burgeoning offshoring sector has supported this.
Offshoring accounts for at least 7 percent of the Philippines’ GDP and employs more than 1.2 million workers. As such, the sector is a fundamental component of continuing economic growth.
Ultimately, offshoring is growing at 15 to 18 percent each year and will become an increasingly large contributor to the economy, providing higher wage rates to local workers and enabling them to enjoy a comfortable standard of living.