Economists say that the business process outsourcing industry in the Philippines may be one of the industries to suffer badly from the victory of Republican presidential candidate Donald Trump as the 45th President of the United States.
“Trump has already made statements before that he wants to bring jobs back to America so that will impact the Philippines in terms of the outsourcing industry,” AIM Economics Professor Emmanuel Leyco told GMA News Online on Wednesday, November 9.
The Philippines will suffer from a heavy impact once Trump fulfills his campaign promises of imposing taxes on US companies who conduct outsourcing jobs abroad.
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“Now, how easy it is for Trump to do that will be another issue because outsourcing business have already settled in the Philippines and India,” Leyco added.
The AIM Economics professor also said that job losses are expected if Trump really does bring back jobs to America as promised during his campaign.
“Trump has not exactly made a foreign policy statement yet on Asia, so we don’t know yet. That’s why the markets are jittery because of this uncertainty,” Leyco noted.
In a report “What would a Trump victory mean for Asia?” senior Asia economist Gareth Leather said that “the Philippines would be the biggest loser if Trump followed through on his threat to punish American companies that outsource jobs abroad.”
“The Philippines has a thriving business process outsourcing sector, which last year brought in revenues equivalent to around 10 percent of GDP,” Leather added.
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An economist from a local bank also added that emerging markets may suffer from Trump’s victory since he has been outspoken about his opposition on trade and immigration.
Sources: (bworldonline.com, gmanetwork.com)
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