PH Digital Economy Forecasted To Reach $25 Billion In 2025
In its 2019 report entitled e-Conomy SEA 2019: Mobile Internet Economy Transforming Southeast Asia, Temasek, and Google found that the Philippine digital economy will grow by a whopping 257.14 percent from $7 billion this year to $25 billion by 2025.
The Philippines is forecasted to be the country with the smallest digital economy among six countries in the Southeast Asian region. According to a study conducted by Temasek and Google, the digital economy in the Philippines is expected to reach $25 billion in 2025. Despite this, it will still pale in comparison to the rising tech scene in neighboring countries.
Indonesia for one will end 2025 with a $133 billion digital economy, Thailand will trail behind at $50 billion in gross merchandise value, followed by Vietnam at $43 billion. Singapore at $27 billion, and Malaysia at $26 billion.
The ranking, however, doesn’t necessarily reflect the performance of the countries trailing behind. All of the countries in the study apart from Indonesia and Vietnam are still performing strongly, averaging between 20 percent and 30 percent since 2015. These rates easily stack up very well against many others globally, the report stated.
The growth of the digital economy in the Philippines will be largely driven by the current major e-commerce in the country such as Shopee, Lazada, and Zalora. Online travel, online media, and ride-hailing will also play a huge role in this.
For the Philippines to further drive its digital economy, it must leverage its current strength by developing those to expand faster.
The report stated:
“Of the six Southeast Asian countries, the Philippines has the most room for growth. The Internet economy makes up 2.1 percent of the country’s GDP currently and is expected to hit 5.3 percent by 2025. Notably, the Philippines is experiencing a growth surge in the Online Media sector, which has recorded a 42-percent annualized growth rate since 2015. Subscription Music and Video Streaming services are especially popular among young Filipinos who are well-acquainted with English content.”
In addition, Temasek and Google, likewise, cited strides on digital finance by Voyager Innovations inc., Coins, and First Circle, all three of which “boosted” investments in the Philippine Internet economy to roughly $300 million last year.
Digital Financial Services is one of the country’s most dynamic promising sectors if aided by supportive regulations.