The digital economic system’s annual contribution to the nation’s financial output decreased as its progress slowed down in 2023, the Philippine Statistics Authority (PSA) reported on Thursday.
Preliminary information from the statistics company confirmed the digital economic system’s share to the nation’s gross home product (GDP) went down to eight.4% final yr from 8.6% in 2022, making it the bottom share to GDP since 2018.
When it comes to gross worth added, the digital sector grew by 7.7% to P2.05 trillion final yr from the P1.90 trillion recorded in 2022.
Nevertheless, this was slower than the 9.4% annual improve in 2022. This was the slowest enlargement because the 8.7% contraction in 2020 through the pandemic.
The PSA mentioned the digital economic system consists of digital transactions overlaying digital-enabling infrastructure, e-commerce, digital media/content material, and authorities digital companies.
It added the federal government digital companies element to cowl the federal government companies straight associated to supporting the digital economic system.
Digital-enabling infrastructure accounted for the most important of complete digital transactions final yr amounting to P1.70 trillion or 82.9% of the sector’s complete gross worth added in 2023.
Digital media/content material accounted for two.9% or P60.21 billion in 2023. This was adopted by e-commerce with a 14% contribution or P286.67 billion and authorities digital companies with 0.2% or P4.16 billion.
In employment, there have been 9.68 million employed Filipinos within the digital industries, up by 1.6% from 9.53 million in 2022. The employment progress was slower than the 8.5% within the earlier yr.
Final yr, employment within the e-commerce sector had the most important share with 87.3% or 8.45 million employed Filipinos. Following had been digital-enabling infrastructure with 11.6% or 1.12 million, digital media/content material (1.1% or 104,000), and authorities digital companies (0.1% or 5,000)
“I imagine the digital business wasn’t in a position to elude the lengthy attain of inflation and sluggish enterprise circumstances that characterised 2023,” College of Asia and the Pacific Senior Economist Cid L. Terosa mentioned in an e-mail.
Mr. Terosa mentioned the unfavorable sentiments within the enterprise sector introduced by the rising costs, rate of interest hikes, and potential wage improve hauled the digital sector’s progress final yr.
“If inflation is contained and the rate of interest is lowered in direction of the third quarter of this yr, I feel the digital business can get well however its progress trajectory will stay under what was achieved in 2022,” he added.
Inflation final yr averaged 6%, larger than the 5.8% in 2022. This was additionally the very best in 14 years because the 8.2% common in 2008 through the international monetary disaster.
The Bangko Sentral ng Pilipinas has hiked borrowing prices by 450 bps from Could 2022 to October 2023, bringing the coverage price to a close to 17-year excessive of 6.5%. — Mariedel Irish U. Catilogo
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