The Philippine digital economy is projected to expand by 16 percent to reach $36 billion in gross merchandise value (GMV) this 2025, according to the latest e-Conomy SEA report by Google, Temasek, and Bain & Co.
This marks a softer expansion compared with the 18-percent increase in 2024.
Still, it is one of the fastest growth rates in Southeast Asia, leading the region in transport and food delivery, which surged 20 percent, and matching regional highs of 16 percent in online media.
The country also recorded the second-fastest growth in digital payments at 20 percent, behind Indonesia.
“This momentum is not a temporary spike; it’s a sustained, systemic transformation — a convergence of innovative platforms, a tech-positive regulatory environment, and our uniquely AI (artificial intelligence)-curious Filipino consumers with real spending power,” said Prep Palacios, country manager at Google Philippines.
Southeast Asian market
The report also noted that Southeast Asia’s digital economy was on track to exceed $300 billion, with GMV and revenue growing 15 percent and 14 percent, respectively.
E-commerce remained the backbone of the Philippines’ digital economy, accounting for over 60 percent of the industry’s total GMV.
E-commerce GMV alone grew to $24 billion in 2025 from $20 billion in 2024.
“We’re quite optimistic about this space,” said Bennett Aquino, partner at Bain & Company. “We see headroom for it to even double by 2030.”
Video commerce is also on the rise, now accounting for a quarter of the Philippines’ e-commerce GMV.
According to the report, this sector now comprises approximately 475,000 sellers and stores, up 90 percent from 2024, and has generated 1.2 billion transactions this year, a 35-percent increase.
Online travel continued its post-pandemic recovery, expanding 14 percent to $4 billion GMV in 2025.
AI boom
The Philippines ranked among the top five Southeast Asian markets included in the global top 20 for interest in multimodal AI, with 78 percent of digital users reporting regular use of AI tools.
Enrollment in generative AI courses surged 480 percent, the second highest in the region.
Apps promoting AI capabilities saw a 79-percent jump in revenue, a surge attributed to Filipinos’ high openness to the technology, with 94 percent of consumers saying they would grant AI tools access to usage information.
However, the country only has 10 registered AI companies, the second lowest in the region.
Aquino said closing this disconnect would require easier business processes and incentives for traditional sectors to integrate AI. (Logan Kal-El M. Zapanta © Philippine Daily Inquirer)
