£60 Billion of the £100 Billion each year comes from individual consumption – based on spending on the internet including access to it. Government ICT along with exports and internet infrastructure make up the other key areas of UK web spending, according to “the Connected Kingdom: How the Internet is traforming the UK” report published today.
The report commissioned by the internet giant Google, was produced by Boston Consulting Group (BCG).
The internet sector, if it was classified as industry in its own right, would come close to the financial sector’s contribution of 9.2% of the UK GDP, the report claims. The UK internet sector is a net exporter of goods and services. For every £1 pound spend by Britons on importing goods and/or services on the web, the UK exports £2.80. Whereas, the offline economy is a net importer.
The report designates UK as the leading ecommerce country in the world which is also highly productive. The internet economy would grow 10% annually for the next five years and would represent 13% of the UK GDP by 2015, the report concluded.
However, in order to do so, Britain needs to focus on eradicating its digital divide, the report finds. Some part so the UK are lagging behind in broadband penetration especially in Scotland and Northern Ireland.
The report found that small firms in the UK are using the internet successfully to do business globally and are growing at an “astounding” pace.
Google, the most successful internet firm, with its UK turnover of £23.6 Billion represented almost 25% of the £100 Billion internet economy in 2009.