Philippines’ digital economy hits 2.5% of GDP: ADB

Homepage > News > Business > Philippines’ digital economy hits 2.5% of GDP: ADB A new report by the Asian Development Bank (ADB) found that the Philippines‘ digital economy accounts for 2.5% of gross domestic product (GDP). It added that the country is lagging behind leading economies in Asia, such as Taiwan (6.1% of GDP), South Korea (5.8% of GDP), and Singapore (5.4% of GDP). In a policy brief, the ADB said that advanced economies mostly derive greater value from transforming digitally. “These variations highlight the central role of infrastructure, digital literacy, and regulatory systems in shaping both domestic and cross-border e-commerce outcomes across economies and regions,” the ADB said. The Philippines was among the countries leading in fintech adoption, alongside its Southeast Asian neighbors Indonesia and Vietnam. The ADB stated “that adoption rates are especially high in emerging economies such as the Philippines and Vietnam, often surpassing those in mature markets.” It highlighted that digital finance helps expand Filipinos’ access to various payment systems and enables cross-border transactions. However, ADB warned that rapid expansion also includes risks s...