Philippines' digital transactions up to exceed $32bn in 2021

The Philippines' digital economy in 2021 amounted to 1.87 trillion pesos ($32 billion), representing an increase of 7.8 per cent from the figure recorded in 2020, new data revealed on Monday.

The Philippine Statistics Authority (PSA) said the the country's digital economy contributes 9.6 per cent to the gross domestic product last year, reports Xinhua news agency.

The digital economy comprises digital transactions covering digital-enabling infrastructure, e-commerce, and digital media or content.

Of the total digital transactions in 2021, digital-enabling infrastructure shared the bulk with 79.6 per cent.

E-commerce contributed 17.6 per cent while digital media or content contributed 2.8 per cent.

Under the digital-enabling infrastructure, telecommunication and professional and business services had the highest shares at 31.5 per cent and 27.1 per cent, respectively.

The PSA said the strict quarantine restrictions during the Covid-19 pandemic in 2020 and 2021 highly affected e-commerce transactions, particularly in accommodation, transport, and other tourism-related activities.

While e-commerce transactions increased for online selling, delivery, and courier services, the PSA said the total transactions declined by 31.4 per cent in 2020, mainly due to a decline in online tourism-related activities.

Data showed 5.59 million Filipinos employed in the digital economy in 2021, posting an increase of 11.6 per cent from the number of 5.01 million in 2020.

Employment in digital-enabling infrastructure recorded the highest share in 2021, with 76.9 per cent, followed by e-commerce (20.7 per cent) and digital media or content (2.4 per cent).