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The Philippine digital economy expanded to P2.25 trillion in 2024, accounting for 8.5% of the country’s gross domestic product, according to preliminary data released Tuesday by the Philippine Statistics Authority.
This marks a 7.6% growth from P2.09 trillion in 2023, as the country continues its push for digital transformation across public and private sectors.
The PSA defines the digital economy as encompassing four main areas: digital-enabling infrastructure, digital content and media, e-commerce, and government digital services. At the sidelines of the High-Level Conference of Middle-Income Countries conference in Makati City, Department of Economy, Planning, and Development (DepDEV) Secretary Arsenio Balisacan said the growth was anticipated. “We expected the digital economy to be on an uptrend, especially as we’re starting from a low base compared to our neighbors,” Balisacan said.
“Digitalization is a top priority—not only in the public sector but also in how the private sector interacts with government.” Digital-enabling infrastructure contributed the largest share at P1.88 trillion, led by: E-commerce followed with a 13.
5% share, while digital content and media contributed 2.4%, and government digital services accounted for 0.3%.
In employment, the sector supported 11.3 million jobs in 2024, a 4.8% increase from 10.
78 million in 2023, and represented 23.1% of total national employment. Rizal Commercial Banking Corp.
Chief Economist Michael Ricafort said the sector’s growth reflected the ongoing surge in online activity. “[It] largely reflects the sharp increase in digital businesses/online transactions in recent years, catching up with the rest of the world, as also accelerated since the COVID-19 pandemic, given the convenience, as well as more choices and lower prices for consumers,” Ricafort noted. “This is strongly manifested by the sustained/continuous high double-digit growth rates in InstaPay and PESONet transactions in recent years.
.. This may also reflect the increased use of e-wallets by Filipinos that are also interconnected with the banking system, electronically through InstaPay and PESONet,” he added.
Ricafort said that digitalization has enabled businesses to expand beyond physical boundaries, reaching more markets locally and globally, potentially boosting sales and profits. — DVM, GMA Integrated News.
