UK is “most web-connected economy” among G20 nations

Internet the lifeblood for business

The UK is the “most web-connected economy” among G20 nations, according to a new report from Boston Consulting Group, which found the internet contributed 8.3% to the country’s GDP in 2010. This compares to South Korea, in second place, where the internet accounts for 7.3% of total GDP and China with 5.5%. The report indicates that the UK internet market will continue outstripping the wider G20 over the next four years. In 2010, the internet contributed 4.1% or USD2.3 trillion to global GDP, and is expected to represent 5.3%, or USD4.2 trillion, by 2016. 

The report estimates that the internet currently contributes USD121bn of business to the UK, with this figure expected to rise to USD225bn by 2016. Online retail is expected to widen this margin over the coming years, with an eighth of all UK retail taking place online in 2010 and this figure expected to hit 23% by 2016. 

The internet is also increasingly becoming the lifeblood for business, with companies using the web for marketing, sales and contact with customers and suppliers growing three times faster than those that don’t. Revenues at firms using the internet grew 12% on average over the past three years, compared to just 4% at companies that say they use the internet little or not at all.

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