By 2025, the Philippines is projected to rise to upper-middle-income status.

Google’s latest report, entitled e-Conomy SEA 2023, indicates the country is experiencing growth that is fueled by domestic demand and resurgence in the service sector. Private consumption is also on the rise, coupled with a decline in unemployment rate, rebound in tourism, and increase in remittances.

E-commerce in the Philippines is expected to grow significantly, potentially reaching $60 billion by 2030, as informal commerce shifts to organized online platforms. Further supporting a growing digital economy is the high internet engagement, with the country’s internet users noted to be among the most engaged worldwide. But digital participation across sectors is found to be underutilizing digital tools, suggesting room for growth.

The trajectory of overall digital economy in the Philippines suggests it could escalate to $35 billion in gross merchandise value by 2025 and as much as $150 billion by 2030. Meanwhile, the gross transaction value of digital payments might reach $126 billion by 2025 and $220 billion by 2030, with infrastructure investment expanding into regional markets to further drive growth.

As for the Southeast Asia region, the digital economies across six markets including the Philippines are expected to reach $218 billion in transaction value in 2023, an 11-percent increase year-on-year.

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