Southeast Asia's Digital Economy will reach $1 trillion by 2030: Report

The report was jointly published by Google, Temasek Holdings, and Bain & Company. It also said that Southeast Asia has seen 60 million new internet users since the start of the COVID-19 pandemic. The growth has taken the total internet users in the region to 440 million. SE Asia has a young population, rapidly increasing smartphone usage and urbanization, and a large middle class; these factors have seen it become one of the fastest-growing digital economies in the world.

The report said that the digital economy for the region will grow from $174 billion now to $360 billion by 2025; by 2030, the region will finally have a $1 trillion internet economy, fueled by e-commerce. All the countries in the region have registered double-digit growth in 2021. Incidentally, the report covered Indonesia, Thailand, Singapore, Malaysia, and the Philippines.

Interestingly, Indonesia alone contributed almost 40% of the region's total internet economy GMV at $70 billion. Also, the Philippines saw a staggering 93% growth over 2021, reaching $17 billion as a digital economy.

The report also found that e-commerce GMV will almost double to $120 billion by the end of 2021; by 2025, it will reach $234 billion. On the report, Florian Hoppe, Head of Digital Practice, Asia-Pacific, Bain & Company, said, “GMV (for Southeast Asia) has increased 49% Y-o-Y, as a seismic consumer and ecosystem shifts accelerated by COVID, continue to drive a massive digital adoption spurt".