The Philippines is one of the growing economies in the world. It is an emerging market that has been experiencing rapid economic growth for decades now. It is home to a young and progressive population who are eager to take on new challenges. Despite the ongoing pandemic, the country remains to have a thriving digital economy that has helped it grow and prosper.
The country’s digital economy is one of its most promising sectors, which has helped it make significant progress. In the last few years, the Philippines has been making strides in improving its digital economy and it is on track to become one of Asia’s leading digital economies by 2022. There has been an increase in providers of fast fiber internet connectivity. And that is a great factor that contributed to our country’s continuous growth.
In this article, we will explore what the digital economy is and how it affects us.
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What is Digital Economy?
The digital economy is a term that refers to the economic activity that takes place in the digital sphere. It encompasses a wide variety of economic operations that rely on digital data and knowledge as primary production inputs.
The digital economy, which has been increasingly dominating our lives over the past few years, is becoming more and more intertwined with our daily life. Increased digital platforms and accessibility to online services have created a dependence on computers in order to function in today’s world.
What are the building blocks of the digital economy?
These are some of the major components of a digital economy:
1. The internet – This enables businesses to sell their products and for customers to search for products they need.
2. E-mail – Electronic communication allows for low-cost, real-time contact throughout the world. It may be used to swiftly communicate information and requests.
3. Digital automation – Firms may leverage computers’ processing capacity to make decisions about output, pricing, and how to contact customers
4. Digital payments – Credit cards, Apple Pay, Google Pay, bitcoin, and bank transfers are all examples of digital payments. A cashless world is being ushered in by the digital economy.
5. Social media – Companies and entrepreneurs utilize this platform to promote their businesses.
What is the impact of the digital economy?
As a global phenomenon, the digital economy has been changing the way we think about economies. This involves a set of economic activities that are enabled by digital technologies such as the internet, computers, and smartphones.”
We are seeing more people working remotely through their laptops. This is due to the increased flexibility of work hours and locations. This has also allowed for a significant increase in freelancers who are able to find work on their own terms.
The rise of the internet economy and digital adoption has also changed how we consume media. Through digital tools, people are now able to stream movies on demand or download music for free with just a few clicks on their computers or mobile devices.
Lastly, the digital economy has impacted how we communicate. With the rise of social media, email, and online chatbots, people are messaging more than they are talking.
Current Status and Future Prospects of the Digital Economy
In recent years, the Philippine government has sought to expand the digital economy, with a focus on improved internet service supply and a more competitive telecommunications sector. During the country’s lockdown in reaction to the COVID-19 outbreak, the country’s dependence on digital infrastructure, internet access, and digital services, such as e-commerce, grew.
This heightened the pressure on stakeholders across the value chain to improve ICT infrastructure, accelerate the digital transformation of corporate processes, and prepare their staff for the new normal.
Meanwhile, the digital economy has the potential to aid post-pandemic economic recovery due to the adaptability of the business process outsourcing industry throughout the quarantine period, as well as a developing start-up ecosystem and the launch of a third telecom in 2021. Accelerating digital development is expected to increase the ease of doing business. This makes the country a more appealing investment destination, and promote more inclusive and sustainable economic growth.
Status of the BPO Industry
During the early stages of the COVID-19 crisis, business process outsourcing (BPO) was hampered by changes in demand and constraints on worker movement, but there is evidence that new engines of growth are developing, which might augur well for the sector’s long-term future.
Along with remittances, BPO is commonly famous as one of the two pillars of the Philippine economy. BPO has long been an important source of foreign cash and high-value jobs for the country’s English-speaking and technologically savvy populace, as it involves international corporations outsourcing operations to local workers. Because of its importance, a significant slowdown in BPO activity would have substantial consequences for the economy as a whole.
E-Commerce in the Philippines
As merchandisers look for new methods to contact customers, the e-commerce market has evolved. In June 2019, Shopee, a Singapore-based e-commerce company, introduced an in-app live-streaming platform in the Philippines, where vendors may establish a following to advertise their items and provide discounts to viewers.
During the pandemic, this platform proved to be a success. In April 2020, Shopee Live had 30 million live stream views, 200 million in-app game plays in the three months between February and May of that year, and an average of over 1 million social interactions each day on its live chat.
Rise of Digital Financial Services
People were compelled to do more financial transactions online due to the shutdown of physical services during the pandemic. Filipinos increasingly prefer digital finance over offline banking for everything, from paying bills to managing investment portfolios.
Similarly, as Filipino internet users get more comfortable with e-commerce, more channels for digital payments are undergoing development, and many businesses are already responding. The transaction and payment are quicker, more cost-effective, and most significantly, user-friendly.
Preference for Online Platforms
The increased use of e-commerce and food delivery during the pandemic appears to be destiny. It is to become a more permanent component of the retail environment. About 73 percent of Filipino customers are likely to maintain or raise their present level of online shopping after limitations are relaxed, according to a poll issued by Visa in July 2020.
The intent of the so-called digital consumers to continue buying online should give both e-commerce and online entrepreneurs a reason to be optimistic.
Enjoy the benefits of the digital economy via Streamtech
Amidst the pandemic, the digital economy has been a huge asset for people to continue thriving. It has given more options for people to have flexibility when it comes to work and family. And the internet is a huge part of this digital economy. Thus, it is a must to equip yourself with a digital tool such as fiber internet from the ultimate internet provider in the Philippines in order to enjoy the benefits of these economic activities.
Streamtech, the country’s newest internet provider, can help you experience the best of what the digital economy can offer. You can do online shopping, access payment portals, do digital banking and even help you build your own online business.
Additionally, Streamtech has a Facebook page where you can see its daily updates.