28 Oct 2010

The UK Internet Economy

Measuring the impact of the internet on the UK economy is notoriously hard.  Boston Consulting Group have made a brave stab at giving it a go.   The results?   That the internet contributes at least £100 billion to the UK economy, about 7.2% of GDP.   There are regional differences and it comes as no suprise that London leads the way.   That said, the East of England and Scotland aren't far behind. 

According to the report, commissioned by Google, if the internet was an economic sector it would be the fifth largest and outweigh the construction, transport and utilities industries in the UK  Around 60 per cent of the £100bn figure is due to internet consumption according to the report.   The remainder of the money is from the UK's internet infrastructure, government IT spending and net exports.  For every £1 spent online to import goods, £2.80 is exported helping to make the UK the world's leading nation for e-commerce, according to the report - this compares to exports of 90p for every £1 imported in the offline economy.

It's a great report so do take a look.

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