The Philippine internet economy is poised to grow to $28 billion in 2025, four-fold than the $7 billion in 2019, the SEA eConomy Report 2020 said.
The report released by Google, Temasek and Bain & Company shows the digital economy of the country will grow by 6 percent to $7.5 billion in 2020 from last year in terms of gross merchandise value (GMV) .
Compounded annual growth rate is estimated at 30 percent between this year and 2025, the fastest among the six Asean economies covered by the report.
At $28 billion GMV, the Philippines is the second to the last among the six countries in the region in terms of GMV by 2025. Indonesia will lead the pack at $124 billion.
The report has cited transport (ride-hailing), online travel and lending have experienced a temporary setback in the region due to the pandemic while food delivery, online media, insurance, investment, payment and remittances will continue to grow.
It noted electronic commerce will grow at an accelerated pace.
The report said newfound online habits of consumers in the region will propel the e-commerce industry to reach $172 billion by 2025, almost triple than this year’s projection of $62 billion.
In 2020, more than one in three digital service consumers started using a new online service due to COVID-19, and of these, 94 percent intend to continue using the service beyond the pandemic. A large number of the new digital consumers are from non-metropolitan areas, specifically in Malaysia, Indonesia and the Philippines.
The region’s internet sectors are seen hitting $100 billion in 2020, and are on track to cross $300 billion by 2025.