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Internet accounts for higher percentage of GDP in UK of all major economies

In 2010 the internet economy in the UK accounted for 8.3% of GDP, followed by South Korea with 7.3%, China with 5.5% and only 4.7% in the US, according to a study by the Boston Consulting Group (BCG).

UK is leading the world in internet selling

In the UK the value of the internet economy was £121bn in 2010, which makes it larger than the healthcare, construction or education sectors. The study shows that 13.5% of all purchases were done over the internet in the UK in 2010 and it is projected that this will increase to 23% by 2016. It is also expected that the UK internet economy will grow by 11% per annum over the next four years and will be valued at £221bn by 2016.

In the G-20 nations as a whole, the BCG forecasts that the internet economy will grow by more than 10% a year until 2016, but there is a disparity between the developed markets where the figure will reach only 8% and the developing markets where it will grow at an average annual rate of 18%.

Argentina and India will see the fastest growth, at 24% and 23% per year, respectively. BCG projects that the internet economy will contribute a total of $4.2 trillion to the G-20s total GDP in 2016. They said that: “If it were a national economy, it would rank in the world’s top five, behind only the US, China, India and Japan, and ahead of Germany.”

The study also noted that in many countries, small and medium enterprises that have engaged actively with consumers on the internet have experienced three-year sales growth rates up to 22 percentage points higher than those of companies with low or no internet presence.

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