Digital economy exceeds P2 trillion mark despite slowdown

The growth of the country's digital economy slowed down last year despite surpassing the P2 trillion mark, the Philippine Statistics Authority (PSA) reported.

The gross value added of the digital economy amounted to P2.05 trillion from January to December 2023, a 7.7 percent increase compared to the previous year's P1.9 trillion.

However, the growth rate in the past year decelerated from 9.4 percent in 2022 and significantly dropped from the 10.7 percent expansion recorded in 2021.

The digital economy comprises four parts: digital-enabling infrastructure, e-commerce, digital media/content, and government digital services. 

According to the PSA, the digital enabling infrastructure has been valued at P1.7 trillion, making it the largest component of the digital economy.

Telecommunication services, meanwhile, make up the largest share of the digital enabling infrastructure at 32.9 percent, followed by professional and business services at 30.1 percent, and computer, electronic, and optical products at 17.1 percent.

On the other hand, e-commerce, digital media/content, and government digital services contributed 14 percent, 2.9 percent, and 0.2 percent, respectively, to the whole digital economy.

In 2023, a total of 9.68 million people were employed in the digital economy. 

Among them, the highest percentage of employment (87.3 percent) was in the e-commerce industry. 

The digital-enabling infrastructure, digital media/content, and government digital services industries accounted for 11.5 percent, 1.1 percent, and 0.1 percent of employment, respectively.

The digital economy of the Philippines is projected to reach $150 billion, equivalent to around P8.68 trillion, by 2030, according to Google’s e-Conomy Southeast Asia 2023 Report.