The report, titled Profits on the Rise: Harnessing SEA’s Advantage, attributes this growth to strong domestic consumption, a robust services sector, and stable remittance inflows.
Key growth drivers include e-commerce, which surged by 23 percent to $21 billion GMV, making it the fastest-growing sector in the region.
Major e-commerce platforms reinvested in growth, while video commerce emerged as a critical component of this expansion.
Other sectors, such as online transport and food delivery, grew by 13 percent, reaching $3 billion GMV, tied with Indonesia for the fastest growth in Southeast Asia.
Digital payments also experienced significant growth, rising by 22 percent to $125 billion in gross transaction value.
“The Philippines is once again Southeast Asia’s fastest-growing digital economy – thanks to its tech-savvy population, thriving digital sectors, and supportive government,” said Jackie Wang, Google’s country director for the Philippines and Thailand.
She also emphasized the Philippines’ potential in artificial intelligence adoption, supported by a digital-savvy population and government backing.
The travel sector rebounded strongly, with outbound spending increasing by 450 percent since 2020, the highest growth in the region. Online media, encompassing video streaming, music, and gaming, grew by 12 percent to $4 billion GMV, driven by advertising revenues.
The report also highlights renewed investments in digital infrastructure, with private funding reaching P200 million this year. Government initiatives, such as the $288-million Philippine Digital Infrastructure Project, aim to bridge connectivity gaps in rural areas.
“The results reaffirm the effectiveness of the administration’s digital economy strategies,” said Trade Secretary Maria Cristina Roque, citing efforts by the Department of Trade and Industry, the Bangko Sentral ng Pilipinas, and Congress to foster a more competitive and inclusive digital landscape.
With continued growth across sectors, the Philippines is set to solidify its role as a regional digital leader, the Google Philippines chief said.
