Philippine BPO, remittances to drive GDP past China by 2016

Philippine BPO, remittances and other factors are expected to drive the Philippines toward a gross domestic product (GDP) that’s projected to outdo China’s slowing economic growth by 2016 according to Citibank’s 2015 Annual Outlook GDP forecasts. 

The report cites the Philippines’ strong performance, with its rising foreign direct investments, remittances from Filipinos working abroad, a booming Philippine outsourcing sector, and record-high real estate activities.

The country hit a 6.9 percent GDP in the fourth quarter of 2014 and recorded an overall 6.1 percent GDP growth for the entire year, placing it ahead of its many Asian neighbors. Growth forecast for 2015 is set at 6.5 percent and 7.3 percent in 2016.

Meanwhile, China’s dazzling economic growth is slowing down due to challenges like high public debt, regional economic imbalances, and low domestic consumption. China’s GDP for 2014 was 7.3 percent, called “disappointing” by analysts. GDP forecast for 2015 is 6.9 percent and 6.7 percent for 2016. 

“China is balancing on the steep and narrow path between growth and reform. This could begin a new seven-year cycle during which GDP growth might likely fall into a range of 6 to 7%,” said the Citibank study. Citibank’s report said that India will also outperform China in the coming years.