The 9th edition of the Google e-Conomy SEA Report showed a 20-percent growth in the country’s overall digital economy based on gross merchandise value, surging from $26 billion to $31 billion in 2024, according to the DTI.
This growth marks a significant achievement, underscoring the success of the government’s digital economy initiatives, it said.
Main drivers of growth
Key drivers of this expansion include robust domestic consumption, a revitalized services sector, and overseas remittances that fuel spending on digital services. Declining unemployment and stabilized inflation have also boosted private consumption, further accelerating digital adoption.
Earlier reports said the Philippines was first recognized as Southeast Asia's fastest-growing internet economy in 2021, with a 93-percent growth rate, but was dislodged by Vietnam in 2022.
Key initiatives
"The results of the 2024 Google, Temasek, and Bain & Co. study reaffirms the effectiveness of the administration’s digital economy strategies,” Trade Secretary Ma. Cristina Roque said in the statement.
“The country’s whole-of-government approach fosters economic growth, drives innovation, and ultimately improves the lives of all Filipinos,” said Roque.
Key initiatives include digitalizing micro, small and medium enterprises (MSMEs), expanding digital infrastructure, promoting digital payments, and enhancing digital taxation policies.
The Google report underscores the impact of recent reforms, such as the Internet Transactions Act and a 12-percent VAT on foreign digital services, which have leveled the playing field for local and international businesses.
What's next?
Looking forward, the DTI plans to implement an Online Business Database, an Online Dispute Resolution System, and an E-commerce Trustmark to ensure consumer protection and trust.
Roque highlights the private sector’s role in achieving these milestones, “Through our e-Commerce Philippines 2028 Roadmap, we’re fostering e-commerce growth to harness our young, tech-savvy population's potential.”
With its digital transformation, the Philippines is poised for enhanced global competitiveness, foreign investment, and economic growth.
