The Philippines is expected to remain on a "brisk growth path" for the second quarter of 2013 thanks to strong domestic demand and the success of the business process outsourcing (BPO) industry according to Moody's Analytics.
Moody's Analytics is a division of Moody's Corp., provider of economic and consumer credit analysis.
In a report published in Business Mirror, Moody's Analytics said that the outsourcing industry in the Philippines played a major role in keeping the economy steady despite the weak projections for global growth.
The economic research and analysis unit added that the Philippines is expected to reach 7.2-% GDP (Gross Domestic Product) growth year-on-year in the second quarter. The country's BPO sector is projected to reach 6.8 million in total employment by 2020. This is around 15 % of the total employment in the country.
"[The] Philippines accounts for 15 percent of the global BPO market. Three years ago, the Philippines became the world's largest provider of offshore voice services. The rise of BPO has widespread benefits for the economy, including employment opportunities for the university-educated, who have tended to move abroad because of the lack of prospects at home," Moody's Analytics said in the same report.
Moody's Analytics pointed out that the country "likely recorded another smashing quarter in the three months to June" and that full-year growth for the country's GDP is expected to hit 6.5 percent in 2013 and 2014, "making the Philippines one of the world's fastest-growing economies."
The strong showing of the manufacturing industry amid domestic demand, strong remittances boosting private consumption, and efforts for economic reforms and restoring investor confidence have also been mentioned as the other contributors to the Philippines' economic growth.
The economic research and analysis unit added, "[Philippine] President [Noynoy] Aquino is rightly credited with helping turn the Philippines' economy away from perennial disappointment. Since taking helm in 2012, [Mr.] Aquino has set the economy on the right course via infrastructure development, with a focus on upgrading transport links, an anti-corruption push, a drive to halt tax avoidance and improved government coffers. Continued success will depend on who takes the reins when [Mr.] Aquino steps down in 2016."