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Digital consumption to propel Southeast Asia’s growth: consulting firm

YCP Solidiance, an Asia-focused management consulting firm, has projected that a rapid increase in digital consumers will be a major driver for the economic growth of Southeast Asia.

The firm’s report indicated that Southeast Asia is on course to become the world's largest market by 2030, with an influx of investment and business set to benefit several industries, including the digital economy.

According to the "Investing in Asean 2023" report published by the economic bloc in partnership with Allurentis, the region's digital economy is expected to exceed 300 billion USD by 2025 and 1 trillion USD by 2030.

Meanwhile, the Asian Development Bank and the International Monetary Fund said the regional economy are projected to outpace the 2.7% growth of the global economy in 2023. Last year, the digital economy accounted for 7% of Southeast Asian GDP.

The YCP Solidiance report explained formal institutions that support the region's digital development contribute to economic growth. Those organisations' significance involves creating centralised frameworks and initiatives that promote the internet economy.

Millennials and Generation Z that account for 75% of consumers in the region will be the driving force for digital consumption.

Through digital technologies and the internet, the digital economy has given business owners and independent players new ways to connect with clients, broaden their markets, as well as boost their earnings, according to YCP Solidiance./.