Southeast Asia's digital economy to hit $368 billion
Google's 11th e-Conomy SEA report, with Temasek and Bain & Company, projects Southeast Asia's digital economy will reach $368 billion in gross merchandise value in 2026, up 17%, and pass $1 trillion by 2035. It ties the growth to generative AI, already used by 243 million people in the region.
What the article says
On October 21, 2026 Google published the 11th edition of its e-Conomy SEA report, titled Building the Intelligent Economy and produced with Temasek and Bain & Company. It covers ten Southeast Asian countries and puts AI at the center of the region's digital economy growth.
According to the report, 243 million people use generative AI, about 58% of the working population, and gross merchandise value is projected to reach $368 billion in 2026, up 17%, with more than $1 trillion expected by 2035. In addition, 75% of users say they would let AI agents compare prices and complete purchases for them. The report calls for adaptation in agentic adoption, infrastructure (data center capacity growing about threefold in five years), energy efficiency and governance, with the ASEAN DEFA agreement due in November 2026. A mismatch between two figures on AI output accuracy suggests checking the full report.
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