The expected reduction of risk from the US-China trade war, as well as less protectionism and a possible increase in government stimulus will likely benefit the Philippines and the rest of Asia.
The possible decline of trade war concerns could result in increased global trade and economic growth, especially in Asia, according to Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said
Ricarfort said a lesser protectionist stance in the US could also benefit the Philippines’ imports and exports, as well as remittances and the business process outsourcing (BPO) sector.
Citing the latest domestic BPO sector figures, Ricafort said the US accounts for about 70 to 80 percent of BPO business in the Philippines.
The BPO sector is now among the growth drivers of the domestic economy, along with remittances and exports, among others.
Similarly, Ricafort said the institution of additional US government spending that the Democrats, which US President-elect Biden is part of, has been pushing, could result in better economic outcomes for the world’s largest economy and benefit its trade partners like the Philippines.