The Philippine digital economy has once again emerged as Southeast Asia’s fastest-growing, according to the e-Conomy SEA 2024 report by Google, Temasek, and Bain & Company. The nation’s gross merchandise value (GMV) is projected to hit US$31 billion this year, up from US$26 billion in 2023. Key sectors driving this growth include eCommerce, online transport and food delivery, and digital payments, reflecting the country’s robust domestic consumption and thriving remittances from overseas workers.
eCommerce: A Powerhouse in Growth
The e-commerce sector is leading the charge, surging by 23% to reach US$21 billion in GMV. This rapid expansion is fueled by reinvestments from major platforms and the rise of video commerce. Filipino consumers’ increasing reliance on digital marketplaces highlights the sector’s critical role in the nation’s economic acceleration.
Travel & Transport Industries Rebound
The online travel sector is forecasted to reach US$3 billion in GMV by the end of 2024, a 13% growth year-over-year. Filipino outbound travel spending has skyrocketed by 450% since 2020, the highest increase in Southeast Asia. Meanwhile, online transport and food delivery services also recorded a 13% growth rate, propelled by new players and evolving strategies, such as subscription plans and tiered delivery options.
Digital Payments Surge
Digital financial services, particularly digital payments, are seeing unprecedented growth. The sector has expanded by 22%, achieving US$125 billion in Gross Transaction Value (GTV). Providers are leveraging competitive fees, enhanced security measures, and innovative service offerings to cater to the rising demand for e-wallets and digital payment solutions.
Philippines Poised for AI Leadership
Beyond its thriving digital sectors, the Philippines is gaining global attention for its interest in artificial intelligence (AI). With search interest ranking among the top 10 globally, Filipinos are exploring AI applications in education, marketing, and gaming, particularly in regions outside Metro Manila.
“The Philippines is once again Southeast Asia’s fastest-growing digital economy — thanks to its tech-savvy population, thriving digital sectors, and supportive government. The Philippines ranks among the global top 10 for AI search interest too, highlighting its potential to become a leader in AI adoption. To keep all this momentum towards a sustainable digital economy, inclusivity is key. By actively expanding opportunities and ensuring underserved communities can fully participate, we can create a digital future where more Filipinos can thrive,” according to Jackie Wang, Country Director, Google Thailand and the Philippines.
Investments & Policy Drive Growth
The resurgence of investments in digital infrastructure underscores renewed confidence in the Philippine digital economy. Projects like the US$288-million Philippine Digital Infrastructure Project aim to address connectivity gaps, especially in rural areas. Meanwhile, government policies promoting online safety and digital service regulation further bolster the nation’s position as a digital powerhouse.
As the Philippines advances in its digital journey, inclusivity, and sustainability will be critical to ensuring the benefits of this growth reach all Filipinos. The e-Conomy SEA 2024 report underscores the nation’s significant role in shaping Southeast Asia’s digital future. Access the report from here.