The slowdown in the Chinese economy as it ‘rebalances’ itself may not have a heavy impact on the Philippines’ economy but a focus on the investment side is needed to strengthen domestic growth, an International Monetary Fund official said.
Speaking at The Manila Times 3rd Business Forum, IMF Resident Representative Dr. Shanaka Jayanath Peiris said the Philippines would not be greatly affected by the slowdown in China as its exposure to demand from the country was lower compared to other nations.
One of the factors supporting the domestic economy is strong remittances from overseas Filipino workers (OFWs) and a robust services sector driven by the business process outsourcing (BPO) industry.
However, Peiris noted that OFW remittances and the BPO sector were only two legs of the economy, with the third, specifically the investment sector, needing attention,
“The investment leg needs to be improved,” Peiris said.