Digital shift seen generating P5-T in annual economic value by 2030

by Ramon Royandoyan – Philstar.com, 19 Oct 2021

MANILA, Philippines — The domestic economy could generate P5 trillion in annual economic output by 2030 if it maximizes the advantage that digital technologies have to offer, according to a new report released Tuesday.

That would be equivalent to 27% of the Philippines’ gross domestic product in 2020, Alphabeta said in a study commissioned by Google Philippines. Of that amount, P3.5 trillion would come from technologies designed to help businesses recover from the economic fallout from the coronavirus pandemic or similar crises.

The report looked into what the tech giant called eight “transformative” technologies, which include the use of the Internet of Things in the supply chain, 3D printing, digital wallets and precision farming in agriculture, among others.

“Through this report, we have also been able to demonstrate some ways that Google’s tools and services are already benefiting the Philippine digital economy. We are humbled that local businesses, consumers and the wider society derive over P578 billion in annual benefits, brought about through increased revenues and millions of connections online,” said Google Philippines Country Director Bernadette Nacario.

Likewise, the report recommended that the Philippines enhance digital skills training and education, speed up digital innovation and adoption, and promote digital trade opportunities. While this all seems broad, Alphabeta founder Fraser Thompson told reporters in the online briefing that the country’s youth is highly literate in new technologies, which is a “great” starting point to push for this shift.

“Harnessing that tech-savvy young population is exciting for the Philippines,” Thompson said.

Google’s Philippines is bullish that digital trade represented a P1.9 trillion opportunity for the domestic economy. Data from the report estimated that the economic value of digital trade-enabled benefits for the country — which could range from online bookings for local tourism to data storage —is currently worth P160 billion.

Digital exports, such as e-commerce, could possibly expand thrice come 2030. This is largely driven by the business process outsourcing sector these days, currently valued at P187 billion this year.

Data from the report showed that the tech giant helped local businesses rake in P363.4 billion in annual benefits such as increased revenues and a wider customer base with its service