MANILA — The Philippine digital economy is projected to reach $20 billion (P1.1 trillion) by the end of 2022, an economic report on Southeast Asia said.
The annual e-Conomy SEA report said that the country's digital economy enjoyed a growth of 22 percent over the past year.
The report also forecast that Philippine digital economy may reach $35 billion in 2025, growing at a 20 percent annual rate, and may also hit $100 to $150 billion by 2030.
Specific sectors of the country's digital economy are also projected to enjoy significant growths in 2022, namely: transport and food delivery ($1.9 billion), travel ($1 billion), online media ($3.1 billion), and digital financial services ($6 billion).
The report also described the Philippines as the "second fastest growing digital economy" in Southeast Asia, next to Vietnam.
Because of this, the country is forecast to be a "hot investment hub across sectors including digital financial services," attracting more investors in the coming years.
"The Philippines has the fastest growing digital investments sector this year in SEA, at 63 percent growth rate from 2021 to 2022," the report said.
"Seventy-three percent of investors (second highest in SEA after Vietnam) are expecting deal activity to increase in the country’s local digital economy in the period of 2025 to 2030 as compared to the current situation," it added.
Digital financial services in the country are of particular interest to investors, capturing 56 percent of total investor funding in 2022 and raising roughly $450 million in the first half of this year alone.
“The Philippine digital economy remains resilient despite headwinds and continues to provide boundless opportunities," said Bernadette Nacario, Country Director of Google Philippines.
Willy Chang, Associate Partner at Bain & Company, also described the Philippines' digital economy as "one of the more attractive investment hubs in the region."
"We expect growth to come from not only the physical goods and services internet sectors, but also digital financial services across payments, lending, and other Fintech products,” Chang said.
For his part, Trade Secretary Alfredo Pascual said the report shows "that the digital future of the Philippines is bright as it has the fastest growing digital investments sector this year in the region."
"The Department of Trade and Industry is committed to digitalize our MSMEs and work closely with our private sector partners like Google to help reach the full potential of the country’s growing digital economy,” Pascual said.
The annual e-Conomy SEA report examines the digital economies of six countries in Southeast Asia: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
The report uses Google Trends, Temasek insights, and Bain & Company’s analysis, industry sources, and expert interviews in examining the digital economies of these countries.