Southeast Asia’s sizzling-hot internet economy cooled during the pandemic but spending online should bounce back rapidly and triple to more than US$300 billion ($404.31 billion) by 2025, research from Google, Temasek Holdings Pte and Bain & Co. shows.

The value of transactions in four key areas -- e-commerce, travel, media and transport and food -- should grow just US$5 billion to about US$105 billion in 2020, when many consumers turned to mobile shopping for the first time but lockdowns hammered spending on trips.

The region, home to Alibaba Group Holding Ltd.’s Lazada and Tencent Holdings Ltd.-backed Sea Ltd., will see a 63% increase in e-commerce gross merchandise value from 2019 as home-bound consumers picked up groceries and essentials from the likes of Lazada’s RedMart and Sea’s Shopee. Online shopping is now forecast to hit US$172 billion by 2025 versus a previous US$153 billion estimate, the research showed.

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