Philippine digital economy balloons to P2.25 trillion

MANILA, Philippines — The value of the Philippine digital economy went up by 7.7 percent last year amid increasing use of digital services.

Data released by the Philippine Statistics Authority showed that the Philippine digital economy was valued at P2.25 trillion in 2024, up from P2.09 trillion in 2023.

However, while the value of the digital economy went up, its contribution to the country’s gross domestic product slipped to 8.5 percent last year from 8.6 percent in 2023.

The digital economy covers transactions under four key components: digital-enabling infrastructure, digital content and media, e-commerce and government.

Of the key components, digital-enabling infrastructure contributed the largest share at P1.88 trillion last year.

The top three industries under this component include professional and business support services, telecommunication services and information communication technology manufacturing industries.

E-commerce had a 14-percent share amounting to P302.31 billion in 2024.

Meanwhile, digital content and media had a 2.4-percent share valued at P53.98 billion and government digital services contributed 0.3 percent amounting to P6.6 billion.

Department of Economy, Planning and Development Secretary Arsenio Balisacan told reporters that the higher digital economy value was expected given that digitalization is a priority both for the government and private sector.

“It’s in the PDP (Philippine Development Plan). And it is a top thrust of our government. Digitalizing is not just in the public sector, but also the way the private sector deals with government.  That’s why there’s so much effort put into digitalization,” Balisacan said.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the higher digital economy value last year reflects the sharp increase in digital businesses or online transactions in recent years, given the convenience and lower prices offered to consumers.

“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, since these digital payment solutions are used to settle many online or digital business transactions,” he said.

Looking ahead, Balisacan said the government expects the share of the digital sector to contribute more to the economy in the near term.

“Once it is developed, it can spur growth in new industries or even existing industries. So we expect a lot of that,” he said.

Last year, the digital economy employed 11.3 million workers, up by 4.8 percent from 10.78 million in 2023.