In 2022, Singapore’s digital economy contributed to more than 17% of its gross domestic product, up from 13% in 2017, according to its Infocomm Media Development Authority.

According to calculations, Singapore’s digital economy will contribute 106 billion Singapore dollars ($77.5 billion) to its GDP in 2022, nearly doubling from 58 billion dollars in 2017.

Two parts of the digital economy exist: the information and communications sector; and digitalization in other sectors.

A third of the digital economy is driven by the information and communications sector, and two-thirds by digitalization in other sectors.

Through telecommunications, computer programming, and IT consulting, cloud computing, and software development, the I&C sector drove digitalization.

Measurement of digitalization in the rest of the economy excludes investments and spending in I&C. As a result of investments in digital technologies, firms build value such as delivering better customer service, optimizing business processes, and innovating products.

The report said the digital economy has expanded as businesses have adopted digital technologies, which has led to a robust growth in tech manpower.

In 2020, the digital economies of Estonia, Sweden and the United Kingdom contributed 16.6%, 15% and 16.1% of their GDPs, respectively. In comparison, Singapore’s digital economy contributed 16.7% of its GDP in 2020.