Ecommerce boosts UK economy by £100bn annually
According to a survey commissioned by Google the internet is worth £100bn annually to the UK economy and at 7.2% of GDP it represents a higher proportion than the construction, education and transport industries.
This share is also likely to grow to 10% by 2015, putting the internet’s contribution on a par with the financial sector.
The Boston Consulting Group (BCG) said 60% of the £100bn came from ‘internet consumption’ – via online shopping and the cost of devices and connections to access the internet.
The remaining £40bn came from internet infrastructure investment, government IT spending and net exports.
BCG said more than 19 million UK households have an internet connection which is a 73% share. In fact broadband penetration has doubled since 2005.
The survey highlighted that 31 million adults bought goods or services online in the past year, which is 62% of all adults. Collectively, they spent about £50 billion last year on goods and travel.
UK companies are increasingly embracing the internet’s potential, particularly media, travel, insurance, and fashion.
Matt Brittin, managing director for Google in the UK and Ireland, said: “We all know how the internet has changed the way people access information and communicate. Now for the first time we can see how its adoption by British business has become a major contributor to the UK’s GDP, and that the internet is a central pillar of the UK’s economy.”
Source: BCG report
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