The Philippine digital economy reached ₱2.25 trillion in 2024, making up 8.5% of the country’s gross domestic product (GDP), according to the Philippine Statistics Authority (PSA).
While this marks a 7.6% increase from ₱2.09 trillion in 2023, local media reports noted it was the slowest growth rate since tracking began in 2018.
This deceleration was partly attributed to the sharp recovery of traditional industries such as manufacturing, tourism, and construction, which rebounded strongly post-pandemic. Still, the digital economy remains a key pillar of national growth, supported by online services, e-commerce, and digital platforms.
Where digital growth is coming from
The PSA defines the digital economy as encompassing four main segments: digital-enabling infrastructure, e-commerce, digital media and content, and government digital services. Of these, e-commerce and digital platforms like ride-hailing, food delivery, and freelance services are among the most active drivers.
Employment in the digital economy also grew in 2024, with around 11.3 million Filipinos working in digitally enabled roles—a 4.8% increase from the previous year. However, the Manila Times and BusinessWorld highlighted concerns that this growth may not be keeping pace with the broader economy’s recovery trajectory.
What the slowdown means for policy and the future
The government continues to push for a more robust digital ecosystem. Economic Planning Secretary Arsenio Balisacan reiterated that digital transformation remains central to the Philippine Development Plan 2023–2028. The roadmap includes digitalization of public services, improved broadband infrastructure, and better data governance.
Analysts argue that to avoid stagnation in the digital sector, the government must prioritize innovation, encourage private-sector investment, and upskill the workforce to match evolving digital demands. With regional neighbors pushing ahead in tech-driven growth, the Philippines must sustain momentum to remain competitive.
