The Internet business is booming in the UK according to a research study commissioned by Google. The data showed that the Internet makes up 7.2 per cent of the UK’s gross domestic product (GDP). The Internet is worth 100 billion a year to the UK economy.
The study, commissioned by Google, and completed by Boston Consulting Group (BCG), determined that 60 per cent of the 100 billion pounds a year is comprised of online shopping, the cost consumers spend on their Internet connections and devices giving them Web access. The remaining 40 per cent is from net exports, government IT spending, and investment in the UK’s Internet infrastructure.
The amount is expected to grow. In fact, according to the report by BCG, titled The Connected Kingdom: How the Internet is Transforming the UK, by 2015 the Internet commerce will contribute 10 per cent to the GDP. The annual growth is predicted to be 10 per cent.
The report showed that for every pound spent to import goods to the UK, 2.80 pounds was exported. This makes the UK the world’s leading e-commerce nation in the world. The Internet business in the UK employs 250,000 staff members.
Paul Zwillenberg, a BCG partner, said: “The internet is pervasive in the UK economy today, more so than in most advanced countries. Several industries – including media, travel, insurance and fashion – are being transformed by it.”
Matt Brittin, Managing Director of Google UK, said: “The Internet is a central pillar of the UK’s economy.
“The sector has come of age, and with great prospects for further growth the UK internet economy will be vital to the UK’s future prosperity.”