MANILA, Philippines – The Philippines’ overall digital economy is expected to reach $24 billion this year and $35 billion by 2025, making it the fastest-growing region in Southeast Asia, according to a new report released by Google.
Google’s e-Conomy SEA 2023, combining Temasek’s insights with Google Trends and Bain & Company’s analysis, projects the Philippine digital economy to reach $24-billion (GMV) in 2023, up 13 percent from last year’s $22. billion.
The report found that the country’s digital economy is still largely fueled by e-commerce, which is expected to reach $16 billion this year, up from $15 billion last year.
By 2025, the report said, e-commerce — benefiting from „the shift from informal, unorganized trade to organized digital platforms” — will account for $24 billion in GMV in the country.
„With continued double-digit growth towards $35 B by 2025, the country’s digital economy continues to demonstrate resilience and create opportunities for the Philippines despite macroeconomic interventions,” said Nicky Del Gallego, Head of Data and Insights, Google Philippines.
“This momentum is poised to continue, fueled by the immense potential of AI (artificial intelligence) and digital participation of Internet users outside Metro Manila, which can drive growth in the medium to long term,” Del Gallego added.
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„It is truly remarkable that the Philippine digital economy is on track to achieve sustained double-digit growth,” said Commerce Secretary Alfredo Pascual in a statement released by Google.
“Through a whole-of-government approach, the Department of Trade and Industry is committed to empowering the Philippines in realizing the benefits of the growing digital economy through opportunities to collaborate closely with partners from various sectors, including Google,” Pascual added.
Other sectors that have contributed significantly to the rise of the country’s digital economy include travel ($3 billion), online media ($3 billion) and transportation and food ($2 billion).
The recovery in the services sector is expected to boost growth in the medium and long term, the report noted.