Boston Consulting Group says that the Internet economy will continue to grow by 10% a year through 2016
A new report published by The Boston Consulting Group (BCG), as part of its Connected World series, finds that in the developed markets of the G-20 countries the Internet economy will continue to grow at pace of more than 10 percent a year through 2016.
The full report, The $4.2 Trillion Opportunity: The Internet Economy in the G-20, can be downloaded at www.bcgperspectives.com.
“The Internet economy offers one of the world’s few unfettered growth stories,” said David Dean, BCG senior partner, and the report’s co-author. “Policymakers often cite GDP growth rates of around 10 percent per year in the developing markets, but they look past similar, or even higher, rates close to home.”
The so-called Internet economy contributed most to the overall national GDP in the U.K., accounting for over 8 percent of total economic activity. In the E.U., in general, the Internet accounted for 3.8 percent.
Overall, the Internet economy will contribute a total of $4.2 trillion to the G-20’s total GDP in 2016, The Boston Consulting Group study projects.
“If it were a national economy, it would rank in the world’s top five, behind only the U.S., China, India, and Japan, and ahead of Germany,” said Dean.
“The results are eye-opening in the sense that they demonstrate how completely the Internet has ingrained itself into daily life almost everywhere,” said the report’s co-author Paul Zwillenberg, a BCG partner. “We assessed its value by how much consumers said that they would have to be paid to live without Internet access. In the G-20, they would need to be paid $1,430 each.”