The Philippine digital economy is expected to reach $42 billion in gross merchandise value in 2026, a 15 percent rise from $36 billion in 2025, according to a Google, Temasek, and Bain & Company report.
The study projects growth to as much as $157 billion by 2035. E-commerce leads the way at $28 billion, up 15 percent. Online media follows at $6 billion, up 26 percent, while online travel reaches $3 billion, up 14 percent. Mobility and food delivery grow 2 percent to $4 billion.
Digital payments are set to post the fastest growth in Southeast Asia, climbing 23 percent to $194 billion in gross transaction value. This is backed by the national digital ID system, InstaPay for Business, and the BancNet and PCHC merger. Digital lending is expected to hit $7 billion, up 17 percent, and could reach $31 billion by 2035. Digital insurance grows 16 percent to $110 million.
About 42 million Filipinos, or 53 percent of the working population, now use standalone generative AI platforms. That number rises to roughly 65 million monthly users when AI features in other apps are counted. Users generate about 55 billion AI queries a year, though only one in four uses AI daily. A third of consumer journeys now start with AI.
Half of Filipino AI users trust the technology more than a year ago, and seven in 10 are open to using AI insights for purchases. Bain partner Bennett Aquino said the next step is turning occasional use into daily workflows. Google Philippines country manager Prep Palacios said strong policy support and ecosystem collaboration will be key to unlocking the economy’s full potential.
The report also cited the National AI Center for Research and Innovation, National Privacy Commission rules, and the Internet Transactions Act as policy moves that could support growth.