Internet economy eyes double-digit growth

Online business to outstrip bricks and mortar economic growth, and the UK leads the way, says report.

e-commerce

Internet and e-commerce activity is set to outperform the conventional economy between now and 2016, according to a survey of the world's 20 largest economies.

BCG, a consulting firm, predicts that across the G20 club of countries, the internet will grow by more than 10 per cent a year. The most rapid growth will come from developing markets, including India and Argentina. But among "developed" economies, growth will be strongest in Italy, at 12 per cent, and the UK, at 11 per cent.

In the UK, the internet economy already accounts for the highest percentage of gross domestic product (GDP) of the G20 nations, followed by South Korea. BCG researchers found that Britons make 13.5 per cent of all purchases online, and this is expected to grow over the next four years, until online transactions are worth 221bn.

The contribution of the internet economy to the UK was significantly higher than that in either the US (4.7 per cent) or China (5.5 per cent). If the world's e-commerce were ranked as a G20 country, it would be bigger than Germany's entire economy.

The report also found that small and medium businesses gained the most from their use of the internet in China, Germany, Italy and France businesses with an online presence saw sales that were up to 22 per cent higher than those that were not online.

And consumers, across the G20, valued their internet access at US$1,430 a year (909).

Already, IT industry experts predict strong growth in demand for professionals with e-commerce skills. Overall, BCG expects the internet economy to be worth US$4.2 trillion (2.64tn) by 2016.

Featured Resources

Key considerations for implementing secure telework at scale

Identifying the security risks and advanced requirements of a remote workforce

Download now

The State of Salesforce 2020

Your guide to getting the most from Salesforce

Download now

Fast, flexible and compliant e-signatures for global businesses

Be at the forefront of digital transformation with electronic signatures

Download now

Rethink your cybersecurity strategy for the new world

5 steps to secure the enterprise and be fit for a flexible future

Download now

Recommended

Top 10 reasons to consider flexible working
Business strategy

Top 10 reasons to consider flexible working

18 Mar 2020
Six ways boards can step up support for cyber security
Business strategy

Six ways boards can step up support for cyber security

27 Jan 2020
Data scientist jobs: Where does the big data talent gap lie?
Careers & training

Data scientist jobs: Where does the big data talent gap lie?

17 Sep 2019
Four tips for effective business collaboration
Business strategy

Four tips for effective business collaboration

27 Aug 2019

Most Popular

How to find RAM speed, size and type
Laptops

How to find RAM speed, size and type

3 Aug 2020
How to use Chromecast without Wi-Fi
Mobile

How to use Chromecast without Wi-Fi

4 Aug 2020
Police use of facial recognition ruled unlawful in the UK
privacy

Police use of facial recognition ruled unlawful in the UK

11 Aug 2020