BIZ BUZZ: Citi bullish on PH
In the era of rising protectionism, which can threaten the growth of the global economy, American banking giant Citi is still bullish on the Philippines.
And that optimism stems from the country’s vibrant business process outsourcing (BPO) sector which, according to many observers, is relatively insulated from tariff threats that can easily hurt merchandise exports.
A strong banking sector is another source of confidence in the Philippines amid the external headwinds.
“We think the Philippines is primed for great growth. The Philippines grew close to 6 percent in 2024. We expect the growth in 2025 to stay in the 6 [percent] handle,” Amol Gupte, Asia South Head at Citi, said in a recent press conference.
But despite such a rosy outlook, Gupte said that there are things that must be done to safeguard the economy’s resilience.
For one, the Citi official said the local BPO sector must move up the value chain and expand beyond “voice jobs” to counter the displacement effects of artificial intelligence.
He also brought attention to the impact of a slower rate-cutting cycle on the profitability of Philippine banks.
“Watch that space,” Gupte said.
