Internet 'economy' to hit $4.2 tn by 2016: study

Mar 19, 2012
An online shopper looks over a catalog while waiting for a web page to load. Online business is playing an increasingly powerful role in national economies and is projected to account for $4.2 trillion of the Group of 20 nations' total gross domestic product by the year 2016.

Online business is playing an increasingly powerful role in national economies and is projected to account for $4.2 trillion of the Group of 20 nations' total gross domestic product by the year 2016.

The "Internet economy" will grow at a rate of eight percent annually in and more than twice that in developing markets, according to a study released on Monday by The Boston Consulting Group (BCG).

India and Argentina will see the fastest growth, with rates expected to be 23 percent and 24 percent respectively, BCG said in a report.

"The Internet economy offers one of the world's few unfettered growth stories," said BCG senior partner and report co-author David Dean.

In an array of countries including France, Germany and China small and medium-sized companies (SMEs) that actively engaged consumers online saw sales rates climb much more than did firms with scant Internet presences.

"Around the world, SMEs that embrace the Internet are growing faster and adding more jobs than those that don't," said partner Paul Zwillenberg.

"By encouraging businesses to turn to the Internet, countries can improve their and growth prospects."

Explore further: UK: Former reporter sentenced for phone hacking

add to favorites email to friend print save as pdf

Related Stories

Internet accounts for 7.2% of British economy: study

Oct 28, 2010

The Internet contributed 100 billion pounds (155 billion dollars, 115 billion euros) to the British economy last year, about 7.2 percent of gross domestic product (GDP), a report showed Thursday.

Hong Kong's e-economy booming: Google

May 05, 2011

The Internet is expected to contribute around $18.8 billion -- 7.2 percent of the total -- to Hong Kong's economy by 2015, driven by a surge in mobile use and online shopping, a report for Google said.

China e-commerce sales up 22% in 2010: report

Jan 19, 2011

Online sales in China, the world's largest web market, rose 22 percent in 2010 as price-sensitive consumers turned to the Internet for cheaper products amid rising inflation, an industry report said.

Recommended for you

UK: Former reporter sentenced for phone hacking

59 minutes ago

(AP)—A former British tabloid reporter was given a 10-month suspended prison sentence Thursday for his role in the long-running phone hacking scandal that shook Rupert Murdoch's media empire.

Evaluating system security by analyzing spam volume

1 hour ago

The Center for Research on Electronic Commerce (CREC) at The University of Texas at Austin is working to protect consumer data by using a company's spam volume to evaluate its security vulnerability through the SpamRankings.net ...

Surveillance a part of everyday life

2 hours ago

Details of casual conversations and a comprehensive store of 'deleted' information were just some of what Victoria University of Wellington students found during a project to uncover what records companies ...

European Central Bank hit by data theft

2 hours ago

(AP)—The European Central Bank said Thursday that email addresses and other contact information have been stolen from a database that serves its public website, though it stressed that no internal systems or market-sensitive ...

Twitter admits to diversity problem in workforce

5 hours ago

(AP)—Twitter acknowledged Wednesday that it has been hiring too many white and Asian men to fill high-paying technology jobs, just like several other major companies in Silicon Valley.

Social Security spent $300M on 'IT boondoggle'

16 hours ago

(AP)—Six years ago the Social Security Administration embarked on an aggressive plan to replace outdated computer systems overwhelmed by a growing flood of disability claims.

User comments : 0