Based on Bangko Sentral ng Pilipinas data, it was estimated that 70 percent of BPO revenues were sourced from the US. Trinidad estimated that the US election could put at risk $1 to $2 billion or about 0.4-0.7 percent of Philippine gross domestic product (GDP) in lost BPO business opportunities. This, in turn, is seen to translate to foregone consumption growth of roughly 0.8 to 1.7 percent, precluding multiplier effects. Trinidad said discretionary spending items, such as those spent in restaurants and hotels, may be the first to fade away. “Since BPO office requirements sparked the commercial office segment building boom, lost BPO opportunities may shade real investment gains as well.

Source: The Nation Bangkok November 11, 2016 03:58 UTC