Philippine Digital Trade To Hit P1.9T by 2030

June 14, 2019

Revenues from the Philippine digital trade is projected to grow by nearly 12-fold and reach P1.9 trillion by 2030 if the country can leverage opportunities in digital technology and trade, including IT and business process outsourcing (IT-BPO) services. This is according to a report by the Hinrich Foundation. The report cited information technology and business process outsourcing (BPO) as the primary driver of digital exports.

Digital Trade

Digital trade is the production, distribution and sale of digitally-enabled products and services, including cross-border data flows. In 2017, digital trade was valued at P160 billion or equivalent to 1.8 percent of the gross domestic product (GDP).

Digitally-enabled products and services can be physical or traded online. These services include IT and business process outsourcing (IT-BPO) services, data processing and online software consultancy, and telecommunications services like email, video conferencing and digital file sharing.

Data Revolution

The Hinrich Foundation report, titled “The Data Revolution: How the Philippines Can Capture the Digital Trade Opportunity at Home and Abroad,” estimated the country’s digital exports to grow by 218 percent and reach P594 billion by 2030. Digital exports in 2017 was at P187 billion, accounting for 5.4 percent of total exports and making it the country’s sixth largest export sector.