Trump presidency to hit PHL BPO industry — economists

The Philippine business process outsourcing industry may suffer economic headwind from the win of Republican presidential bet Donald Trump as the 45th President of the United States, according to economists.

"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.

If Trump starts to take steps to fulfill his campaign pronouncements that he will impose taxes on US companies that outsource jobs abroad, it will have a direct impact on the Philippines.

"Now, how easy it is for Trump to do that will be another issue because outsourcing businesses have already settled in the Philippines and India," Leyco noted.

The BPO sector generated 1.2 million jobs and $22 billion in revenue in 2015.

Leyco said job losses can be expected if Trump will be true to his campaign promise to bring jobs back to America.

"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," he noted.

Capital Economics senior Asia economist Gareth Leather said in a report – "What would a Trump victory mean for Asia?" – 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 (gross domestic product)," Leather added.

An economist from a local bank, likewise, noted emerging markets may suffer from a Trump presidency since the Republican candidate has been very outspoken against trade and immigration.

According to a report by Reuters, Trump defeated his rival Democratic bet Hillary Clinton with the latter conceding in the race for the White House. — VDS, GMA News