Bernie Cahiles-Magkilat
Nov 23, 2022
The Philippines is the fastest growing digital investments in Southeast Asia and its digital economy is expected to reach $35 billion by 2025 and possibly $100 billion-$150 billion by 2030, according to the latest e-Conomy SEA Report.
The Philippines will attract more investors over the long term as 73 percent of investors are expecting deal activity to increase in the local digital economy in the period of 2025 to 2030, it added.
With robust investment, the Philippine digital economy is on track to hit $20 billion Gross Merchandise Value in 2022, after growing at 22 percent over the past year.
By 2025, the local digital economy is projected to reach $35 billion GMV, growing at a 20 percent Compound Annual Growth Rate, and possibly will hit $100 to $150 billion GMV by 2030.
Growing at 17 percent from the previous year, e-commerce is expected to reach $14 billion GMV by 2022 and $22 billion GMV by 2025 as it continues to propel the local digital economy.
Despite the partial resumption of in-store shopping, e-commerce accounted for 70 percent of the overall Philippine digital economy.
E-commerce, food delivery and video-on-demand are the top three digital activities of Filipinos showing an adoption rate of 88 percent, 69 percent, and 58 percent respectively among digital urban users.
As recovery to pre-pandemic levels is likely to be gradual, travel is growing at 44 percent CAGR by 2025 where the sector is expected to reach $4 billion GMV. The report also highlighted the country's robust online media and digital financial services.
In 2022, digital payments will drive $75 billion GTV and keep growing at 18 percent CAGR to reach $123 billion GTV in 2025.
"With the Philippines as the second fastest growing digital economy in SEA in 2022 and between 2022 to 2025, the country will be a hot investment hub across sectors including digital financial services," the report stated.