The country’s digital economy is projected to reach US$109 billion in gross merchandise value (GMV) in 2025, according to the annual “e-Conomy Southeast Asia” report published on Nov. 1 by tech giant Google, Singapore-based Temasek and the United States-based research firm Bain & Company. That figure was lower than the $130 billion projected for the same period in last year’s report.

Similarly, Southeast Asia’s GMV is projected to hover at $295 billion in 2025 according to the report, a decline from the $330 billion estimated in the previous report.

GMV typically serves as a key indicator for assessing the health of the digital economy sector, as revenue depends on fees charged upon merchandise sold in a given period of time.

Aadarsh Baijal, partner and head of vector at Bain & Company’s Southeast Asia office told the media on Tuesday that he expected GMV growth would be less muted over the long term, as most firms will have undergone downward adjustment to align with increased focus on revenue and profit generation.

“Despite global macroeconomic issues, digital businesses making pivots toward the path to profitability is a healthy shift,” Baijal said during the report’s press briefing in the Google Indonesia office in Jakarta.

“In the long term, we will see more players doing the same,” he added.