Press Release
The Philippine digital economy is the fastest-growing in Southeast Asia (SEA), jumping from $26 billion in 2023 to a projected $31 billion in gross merchandise value (GMV) this year, according to the latest e-Conomy SEA report titled Profits on the rise, harnessing SEA’s advantage by Google, Temasek, and Bain and Company.
The report’s findings highlight that this growth is propelled by the country’s fastest-growing e-commerce (recorded at 23%), online transport and food delivery (along with Indonesia at 13%) and digital payments sectors (at 22%), off several factors including strong domestic consumption, a revitalized services sector, and a steady flow of remittances from overseas workers.
Double-digit growth across digital sectors
The Philippine digital economy has progressed towards profitability delivering double-digit growth for GMV across sectors. Deeper digital participation among users, effective monetization strategies of players, and stabilizing inflation among others will continue to drive increased demand for digital services.
- E-commerce: The Philippines has the fastest-growing e-commerce industry in all of Southeast Asia, accelerating at 23% to hit $21 billion GMV in 2024. This speedy growth is driven by many factors, including major e-commerce platforms reinvesting in GMV growth, paired with the rise of video commerce.
- Online travel: Travel is on a full upswing as the sector is projected to end 2024 with $3 billion in GMV, up by 13% from last year. Outbound travel spending by Filipinos skyrocketed by 450% since 2020 – the highest increase in Southeast Asia – showing a momentum in the post-lockdown travel boom. Most of this spending (67%) remains within APAC, with shopping claiming the lion’s share at 64%.
- Online transport and food delivery: The country has the fastest-growing online transport and food delivery sector in Southeast Asia, alongside Indonesia at 13% growth rate. The sector is well on track to hit $3 billion in GMV this year, representing an increase of 13%. Food delivery platforms are increasingly focused on boosting profitability through new revenue streams like tiered delivery options and subscription plans, while competition remains high in ride hailing due to the entry of new players and expansion of existing players.
- Online media. Online media, which includes video streaming, music streaming, and gaming, continues to thrive. The sector jumps 12% in GMV this year to a projected $4 billion off the strength of advertising as a valuable stream for revenue.
- Digital financial services. The Philippines is also witnessing unprecedented growth in digital financial services, particularly in digital payments. In fact, the Philippines has the fastest-growing digital payments sector in Southeast Asia, surging at 22% to reach $125B in Gross Transaction Value (GTV) in 2024. This growth is encouraging service providers to maintain competitive fees while also improving security and service reliability. As even more Filipinos continue to adopt digital payments and e-wallet services, providers are adjusting their strategies, including increasing merchant discount rates. Super-apps that provide a wide and comprehensive variety of channels, features, and services are expected to retain their dominant position in the field.
Tech-positive Philippines ready to take off with greater AI adoption
The Philippines has what it takes to be a leader in AI adoption and development. It has the success ingredients like a young, digital-savvy population, English language capability, strong digital economy players, and tech-positive government among others. 
In fact, the Philippines is among the top 10 countries globally searching about AI. Filipinos are particularly interested in how AI can be applied to education, marketing, and gaming. The report highlights that the search interest around AI is happening beyond the National Capital Region like CALABARZON, Central Luzon, and Davao. Clearly, cities and rural areas outside Metro Manila are embracing AI.
“The Philippines is once again Southeast Asia’s fastest-growing digital economy – thanks to its tech-savvy population, thriving digital sectors, and supportive government,” said Jackie Wang, Country Director, Google Thailand and the Philippines. “The Philippines ranks among the global top 10 for AI search interest too, highlighting its potential to become a leader in AI adoption. To keep all this momentum towards a sustainable digital economy, inclusivity is key. By actively expanding opportunities and ensuring underserved communities can fully participate, we can create a digital future where more Filipinos can thrive.”
“Southeast Asia’s digital economy continues to do well, with continued double-digit GMV and revenue growth and a surge in profitability across sectors led by key players. The Philippines continues to play a significant role in driving this growth as the fastest-growing digital economy in the region, especially as the nation ramps up investments in digital infrastructure and new technologies such as AI. To fully harness the transformative potential of Generative AI, businesses must advance beyond experimentation and invest in foundational elements—aligning AI initiatives with core business objectives to address real-world problems and create tangible value, strengthen AI talent, and build scalable, adaptable infrastructure for sustained growth,” said Bennett Aquino, Partner, Bain & Company.
Alongside the growth in its digital economy, the Philippines is also experiencing a resurgence of investment in its digital infrastructure after a dip in 2023, reflecting renewed confidence in the country’s digital potential. Private funding this year has reached ₱0.2 billion after ending 2023 at ₱0.3 billion, with nascent sectors receiving around 60% of the total investments so far as of the first half of 2024.
The biggest moves made so far are initiatives such as the $288-million Philippine Digital Infrastructure Project, which aims to fill in the gaps of connectivity in the country’s rural areas and expand existing infrastructure. This renewed interest is further reinforced by supportive government policies aimed at improving online safety, regulating digital service providers, and establishing a more secure and competitive digital environment.
“The results of the 2024 Google, Temasek, and Bain & Co. study reaffirms the effectiveness of the administration’s digital economy strategies. The country’s whole-of-government approach fosters economic growth, drives innovation, and ultimately improves the lives of all Filipinos. This collective effort includes the DTI’s digitalization of micro, small, and medium enterprises; the DICT’s acceleration of digital infrastructure; the BSP’s promotion of digital payments; the DOF’s adoption of a digital taxation and customs policy, and the Congress’ passage of relevant laws,” said Hon. Maria Cristina Roque, Secretary, Department of Trade and Industry.
