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Design sector accounts for 6.6% of PH gross value added – report

Published Dec 7, 2023 09:28 am

The Philippine design economy generated P2.9 trillion in turnover, contributed P1.2 trillion in gross value added (GVA) and generated 705,000 jobs in 2020, thus accounting for 6.6 percent of the national GVA and 1.8 percent of total national employment, according to the “Making Design Count” report.

The trailblazing research “Making Design Count” unveiled Thursday, Dec. 7, by the Design Center of the Philippines, an agency under the Department of Trade and Industry, and its partners Nordicity, Bayan Academy, and PDR International Centre for Design and Research, is the first-ever data gathering and mapping of the Philippine economy. It also marked the 50th anniversary of the Design Center of the Philippines.

“In this report, the contribution of the design ecosystem to value adding is not just aesthetics,” stressed Maria Rita O. Matute, executive director of the Design Center.

Matute cited the role of designs in the creation of a new revenue stream and in broadening the base of entrepreneurship and employment with focus on small scale and medium enterprises in the country.

“We’re punching above our weights in contribution to the Philippine economy and jobs creation,” she added.

The report further showed that in 2020, the GVA of the design sector surpassed the country’s food services (P232.4 billion), transportation (P512.8 billion); and information and communication (P585 billion) sectors. It was on par with real estate (P1.027 trillion), and professional business services (P1.064 trillion.)

Citing the data, Matute pointed out that it only proves that the “design sector makes a significant but often unrecognized impact in the Philippine economy.”

Also, key findings in the “Design Counts” survey showed a dynamic Philippine design sector where freelancers make up 39 percent of the workforce.

Designers can also be found in all parts of the country with the National Capital Region accounting for the bulk at 54 percent. The design sector is also considered emergent with 70 percent of designers started their careers less than 12 years ago only.

In 2020, the survey also showed that freelance designers had higher incomes than the national average salary of P186,201 versus P161,848. But the survey showed a 21 percent drop in income between 2019 and 2020 due to the COVID-19 pandemic.

Many freelance designers supplement design work with non-design work. On average, 45 percent of their income is from design activities.

Most designers also work locally with 68 percent of earnings derived from their own province and 15 percent from other provinces.

Only 17 percent of individual respondents reported international income from exports outside of the Philippines. Europe, excluding UK, is the top market for exports accounting for 48 percent of their business.

The survey also showed that exporting and international working has also significant advantage for designers beyond purely financial consideration. It stated that sharing and learning was considered to be the biggest advantage to international collaboration for a third of respondents (34 percent), followed by developing the designer’s own creative practice (28 percent).

The design economy also provides various services to multiple sectors, with 32 percent supplying he retail and wholesale and food and beverage service sectors.

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