Even though there is an exchange rate depreciation, the positive side is that it does not negatively affect the BPO segment. Actually, it’s beneficial, according to the socioeconomic planning secretary. With this, firms looking for outsourcing solutions can still easily access the Philippines and start the venture through Ezy Outsourcing Hub. For more information, call (PH) 02-6571872 / (AU) +61 419 200 663 or email firstname.lastname@example.org.
The Philippines is currently experiencing an inflation increase that has evidently affecting Filipino’s consumption of goods. Currently having depreciation of the peso to US dollar exchange rate, Socioeconomic Planning Secretary Ernesto Pernia said Filipino’s should not worry about it because it’s actually beneficial for the archipelago.
“In fact, it’s oscillating between PHP53.3 and PHP53.5. As long as it doesn’t go beyond that, it’s fine because there are many benefits from competitive exchange rate. Not a weak exchange rate, but a competitive exchange rate,” Pernia said as quoted on Philippine News Agency.
Specifying the reasons, the socioeconomic planning secretary said the competitive exchange rate is actually good for these certain sectors: exports, tourism, business process outsourcing (BPO) industry, families receiving remittances, and import-substituting industries. Mr Pernia also specified that trade deficits can decrease as long as there are continuous exports and tourism.
“Our services exports, there is no deficit, there is a surplus. It’s the goods exports that are weak. Perhaps we need to ramp up tourism and other service exports to make up for the slow movement of our exports in the global market,” he added as quoted on Philippine News Agency.
According to Mr Pernia, the “Build, Build, Build” infrastructure program and the projects that target the improvement of information communications technology (ICT) uses imported goods, along with raw materials for manufacturing. The socioeconomic planning secretary said several factors were “not a good environment for exports,” which was the increase in the trade deficit to protectionism and trade tension.
“So I think our manufacturing sector did well in May, including manufacturing industries, for exports so i think exports performance will improve in the coming months,” he said as quoted on Philippine News Agency.
“Our trade deficit will improve over the coming months, before the end of the year, as inflation will also taper off towards the end of the year,” he added as quoted on Philippine News Agency.